Jenine Company Sponsors a Noncontributory,defined Benefit Pension Plan

question 32

Multiple Choice

Jenine Company sponsors a noncontributory,defined benefit pension plan.On December 31,2014,the end of the company's accounting period,the company received the projected benefit obligation report from the independent actuary.The following data were included: Based on this information,the January 1,2014,balance for the PBO and the service cost for the year ended December 31,2014,were
Beginning PBO 2014 Service Cost

• A) $150,000 $81,000
• B) $150,000 $67,500
• C) $216,000 $67,500
• D) $163,500 $54,000

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Definitions:

Mass Production

The manufacture of large quantities of standardized products, often using assembly lines or automated technology, to achieve economies of scale.

Cost Savings

A reduction in expenses achieved by purchasing the same goods or services at lower prices, or by employing more efficient or effective operations.

Business Start-Ups

New business ventures often characterized by innovation, high risks, and the potential for significant growth.

Behavioral Economics

The branch of economic theory that combines insights from economics, psychology, and biology to make more accurate predictions about human behavior than conventional neoclassical economics, which is hampered by its core assumptions that people are fundamentally rational and almost entirely self-interested. Behavioral economics can explain framing effects, anchoring, mental accounting, the endowment effect, status quo bias, time inconsistency, and loss aversion.