1.At the beginning of the current year, Fox Co. has a net gain (accumulated other comprehensive income) of $1,000,000. The projected benefit obligation and the plan assets are $3,800,000 and $4,200,000 respectively. The average remaining service period for the employees is 20 years. What is the amount of amortization to pension expense for the year?

A)$140,000B) $31,000C) $160,000D) $29,000

1.Owl Co. offered an incentive stock plan to its employees. On January 1, Year 1, options were granted for 100,000, $2 par, common shares. The exercise price equals the $20 market price of the common stock on the grant date. The options cannot be exercised before January 1, Year 5, and expire on December 31, Year 7. Each option has a value of $6 based on an option pricing model.What is the compensation expense that Owl will record for Year 1?

A) $150,000B) $100,000C) $120,000D) Zero

2.Fox Inc. had200,000 shares of$1 par common stock outstanding when they declared a stock dividend of 60,000 shares with a market price of$10. How much should additionalpaid-in capital increase based on this?

A) $600,000B) $540,000C) $60,000D) $0