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-6. Which of the following best describes a defined benefit pension plan? A) Investment risk belongs to the actuary. B) Investment risk belongs to the
-6. Which of the following best describes a defined benefit pension plan? A) Investment risk belongs to the actuary. B) Investment risk belongs to the employee. C) Investment risk belongs to the employer. D) Investment risk belongs to both the employee and employer Use the following to answer questions 7-8: Masco reported the following information for its defined benefit pension plan for 2017: PBO -January 1,2017 Plan Assets -January 1, 2017 Service cost Prior service cost Amortization of net pension losses Contributions Benefits paid to retirees S 500 400 24 20 30 7. Given a discount rate of 10%, what is Masco's PBO at December 31, 2017? A) $550 B) $557 C) $537 D) $544 8. Given an expected return on plan assets of 9% and an actual return on plan assets of 8%, what is Masco's plan asset balance at December 31, 2017? A) $426 B) $442 C) $422 D) $446
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