1.

The Pension Expense in a pension plan for the year were recorded at $856,800. In addition, an amount of $161,400 had been debited to the Other Comprehensive Income account to record all actuarial losses for the year. In addition, the company had contributed a cash amount of $350,000 to the Plan Assets. What would have been the amount recorded as Pension expenses for 2019 if the company were reporting under ASPE?

Select one:

a.

$856,800.

b.

$757,200.

c.

$161,400.

d.

$350,000.

e.

None of the above.

2.

On December 31, 2019, Tyre Corporation received the DBO report from the actuary. The following information was included in the report: ending DBO, $1,100,000; benefits paid to retirees, $100,000; interest cost, $80,000. The discount rate applied by the actuary was 8%. There was no actuarial revaluation required nor any past service cost. What was the service cost for the year?

Select one:

a.

$20,000.

b.

$920,000.

c.

$180,000.

d.

$120,000.

e.

None of the above.