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Acme Corporation has a defined-benefit pension plan covering its 1000 employees. Acme agrees to amend its pension benefits at the beginning of 2025. The prior
Acme Corporation has a defined-benefit pension plan covering its 1000 employees. Acme agrees to amend its pension benefits at the beginning of 2025. The prior service cost associated with the amendment is $500,000. The employees are grouped according to expected years of retirement, as follows: Number of Expected Retirement Group Employees on December 31 A 175 2025 B 290 2026 C 415 2027 D 120 2028 What is the cost per service year? Selected Answer: Correct $201.61 Answers: $125,000 $201,613 Correct $201.61 $5,000
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