Choices for A are :

-Increase profits

-Decrease profits

-Has no impact on Profits

Choices for b are true or false.

Analyzing and Interpreting Pension Disclosures-Plan Assets and Cash Flow YUM! Brands Inc. discloses the following pension footnote in its 10-K report. Pension Plan Assets ($ millions) 2018 Fair value of plan assets at beginning of year $864 Actual return on plan assets (49) Employer contributions 13 Benefits paid (73) Fair value of plan assets at end of year $755 a. How does the "actual return on plan assets of $(49) million affect YUM!'s reported profits for 2018? b. YUM! Brands contributed $13 million cash to the pension plan investment account (asset) during the year. Which of the following is true? I. YUM! recognized the $13 million cash payment as a pension expense in 2018. ii. YUM! did not recognize the $13 million cash payment as a pension expense in 2018 because it is not tax deductible. iii. YUM! did not recognize the $13 million cash payment as a pension expense in 2018 because it relates to employees' service in prior periods. iv. YUM! did not recognize the $13 million cash payment as a pension expense in 2018 because benefits of $73 million were paid to employees and that amount represents the pension expense. v. None of the above. C. YUM!'s pension plan paid out $73 million in benefits during 2018. How is this payment reported? Reduce cash and increase service cost Reduce cash and reduce PBO Reduce plan assets and increase service cost Reduce plan assets and reduce PBO