3. When a company amends a pension plan, for accounting purposes, prior service costs should be

a. treated as a prior period adjustment because no future periods are benefited.

b. amortized in accordance with procedures used for income tax purposes.

c. recorded in other comprehensive income (PSC).

d. reported as an expense in the period the plan is amended.

4. The following information pertains to Hopson Co.'s pension plan:

Actuarial estimate of projected benefit obligation at 1/1/15 $72,000

Assumed discount rate 10%

Service costs for 2020 $28,000

Pension benefits paid during 2020 $15,000

If no change in actuarial estimates occurred during 2020, Hopson's projected benefit obligation at December 31, 2020 was

a. $79,200.

b. $87,200.

c. $92,200.

d. $102,200.