25. Apex company had taxable income of $12 million in fiscal 2017 and paid taxes of $3 million (25%); the company incurred a loss of $7 million in fiscal 2021 when the tax rate is 40%. How much refund Apec entitled to in 2021?

a. nil.

b. $1,750,000.

c. $2,800,000.

d. $3,000,000.

26. Raven Inc. provides a defined benefit pension plan for its employees. At December 31, 2020, the FV of the plan assets is less than the defined benefit obligation liability. In its statement of financial position at December 31, 2021, Raven should report a:

a. excess of the defined benefit obligation over the fair value of the plan assets.

b. excess of the plan assets over the defined benefit obligation.

c. defined benefit obligation.

d. fair value of the plan assets.

27. The following information pertains to Forefront Inc.'s pension plan for calendar 2020:

Accrued benefit obligation at Jan 1/20............................................... $ 96,000

Interest rate on ABO............................................................................... 10%

Current service costs, earned at end of year...................................... $ 24,000

Pension benefits paid retirees, paid 1x at beginning of year........... $ 20,000

If no change in actuarial estimates occurred during 2020, Forefront's accrued benefit obligation (ABO) at December 31, 2020 would be:

a. $107,600.

b. $109,600.

c. $108,600.

d. $111,600.