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ABC, Inc. provides its employees with a defined benefit pension plan. In 2020, the company made the mistake of not amortizing the cost of prior
ABC, Inc. provides its employees with a defined benefit pension plan. In 2020, the company made the mistake of not amortizing the cost of prior period services (PSC). Which of the following statements is correct?
a. Total equity is underestimated.
b. The company's net income is overstated.
c. Total debt is overstated.
d. The company's net income is underestimated.
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