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Beginning of year PBO and assets were $800,000 and $600,000 respectively, and the average remaining service period of plan participants was 15 years. The pension

Beginning of year PBO and assets were $800,000 and $600,000 respectively, and the average remaining service period of plan participants was 15 years. The pension gain/loss-OCI account balance at the beginning of the year was $120,000 cr. (gain). The firm uses corridor (minimum) amortization. By what amount is OCI for the year reduced by recognition of component 5 of pension expense?

a. 2,667

b. 3,000

c. 4,000

d. 8,000

e. 120,000

The pension gain/loss-OCI account balance at 1/1/x3 is $30,000 dr. (loss). At 12/31/x3 the actuary informed the sponsoring firm that PBO had increased $40,000 as a result of an estimate change. Expected return on assets for 20x3 exceeded actual return by $20,000. Component 5 of pension expense for 20x3 was $5,000. What is the 1/1/x4 balance of the pension gain/loss-OCI account?

a. 75,000

b. 95,000

c. 70,000

d. 90,000

e. 85,000

All employees in a firm that has a postretirement health care plan are expected to retire at age 65. They will reach full eligibility at age 60. All are age 45 now and all have accumulated 5 years toward full eligibility. (Years worked after age 40 count toward full eligibility.) EPBO is $400,000. What is APBO?

a. 80,000

b. 100,000

c. 200,000

d. 300,000

e. 400,000

Which of the following is not a voluntary accounting change?

a. accounting principle change

b. estimate change

c. reporting entity change

d. correction of an error affecting prior period earnings

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