3. Company A has an asset which has an asset retirement obligation associated with it during the current year. company a has estimated the expected future cash flows associated with retiring the asset have signifcantly increased:

A. Increase the ARO to the present value of the new total cash flows at the current interest ate

B. Increase the ARO by the present value of the increase in the total cash flows at the original interest rate.

C. Increase the ARO by the present value of the increase in the total cash flows at the current interest rate

D. Increase the ARO to the present value of the new total cash flows at the original interest rat3

4. A pension fund gain that is caused by the curtailment of the plan due to a plant closing should be:

A. Recognied as a gain when the plant closes.

B. Spread over the current year and future years.

C. Charged or credited to the current pension expense.

D. Recognized as a gain when probable to occur and reasonably estimates.

8. Prior service cos is:

A. Recognized as a component of pension expense in the period of the plan amendment.

B. Amortized straight line over 15 years.

C. Amortized straight line over the average remaining service life of active employees or 15 years, whichever is longer.

D. Amortized under the years-of0service method or straight-line over the average remaining service of active employees.