The Following Data Relate to the Defined Benefit Pension Plan

question 61

Essay

The following data relate to the defined benefit pension plan of the Brotherhood Corp.for the years 2013-2015:
At December 31,2012,the books of Youngblood Corp.reflected a pension liability of $30,000.The fair value of pension fund assets at that date was $1,300,000.The pension fund is administered by an independent trustee.

---

Definitions:

Taxation Rate

The percentage at which an individual or corporation is taxed, which can vary based on income level and type of income.

Tax-Exempt Income

Income that is not subject to tax by federal, state, or local authorities, allowing the recipient to keep the full amount.

Recognize Income

The process of reporting income when it is earned, according to accounting principles, regardless of when it is received.

Unemployment Compensation

Financial benefits provided to individuals who have lost their job through no fault of their own, as a means to temporarily assist them while they seek new employment.