1. Which of the following is not a characteristic of a defined-contribution pension plan? a. The employer's contribution each period is based on a set formula. b. The benefits to be received by employees are usually determined by an employees three highest years of salary defined by the terms of the plan. c. The accounting for a defined-contribution plan is straightforward and uncomplicated. d. The benefit of gain or the risk of loss from the assets contributed to the pension fund are borne by the employee.

2. The relationship between the amount funded and the amount reported for pension expense is as follows: a. pension expense must equal the amount funded. b. pension expense will be less than the amount funded. c. pension expense will be more than the amount funded. d. pension expense may be greater than, equal to, or less than the amount funded.

3. When a company adopts a pension plan, prior service costs should be charged to a. prior period adjustments. b. operations of current period. c. other comprehensive income (PSC). d. retained earnings.

4. Kraft, Inc. sponsors a defined-benefit pension plan. The following data relates to the operation of the plan for the year 2019. Service cost $ 200,000 Contributions to the plan 220,000 Actual return on plan assets 180,000 Projected benefit obligation (beginning of year) 2,400,000 Market-related and fair value of plan assets (beginning of year) 1,600,000 The expected return on plan assets and the settlement rate were both 10%. The amount of pension expense reported for 2019 is a. $200,000. b. $260,000. c. $280,000. d. $440,000.

5. Presented below is pension information for Green Company for the year 2019: Expected return on plan assets $24,000 Interest on vested benefits 15,000 Service cost 30,000 Interest on projected benefit obligation 21,000 Amortization of prior service cost due to increase in benefits 18,000 The amount of pension expense to be reported for 2019 is a. $93,000. b. $69,000. c. $60,000. d. $45,000.

6. The following information relates to Jackson, Inc.: For the Year Ended December 31, 2018 2019 Plan assets (at fair value) $1,260,000 $1,824,000 Pension expense 570,000 575,000 Annual contribution to plan 600,000 450,000 Accumulated OCI (PSC) 480,000 420,000 Pension Liability 0 ? The amount reported as the liability for pensions on the December 31, 2019 balance sheet is (Hint: 1-Accumulated needs to be used to get Annual Amortization for PSC. 2-Use journal entries to help with answer.) a. $ -0-. b. $65,000. c. $1,824,000. d. $450,000.