Multi 1. On January 1, Bill Co.'s actuary estimated the company pension plan's projected benefit obligation to be $120,000 based on an assumed discount rate of 10%. Servicecosts for the year amounted to $30,000. Pension benefits pald at the end of the year amounted to $25,000. During the year, there were no changes in the PBO resulting from experience different from that assumed or changes in the assumptions. The projected benefit obligation at December 31 was a. $162,000 b. $125,000o c. $107,000 d. $137,000 62 2. Parker Co. amended its pension plan on January 2 of the current year. It also granted 600,000 of prior service costs to its employees. The employees are all active and expect to provide 2,000 service years in the future, with 350 service years this year. What is Parker's prior service cost amortization for the year? a. $2,000 b. $105,000 c. $600,000 d. $0 3. Income tax expense is equal to a. The sum of current tax expense and deferred tax expense. b. Taxable income multiplied by the applicable tax rate(s) c. Pretax income from continuing operations multiplied by the applicable tax rate(s). d. The difference between current tax expense and deferred tax expense. Differences may arise between the tax bases of assets or liabilities and their reported amounts in the financial statements that result in taxable or deductible amounts in future years when the reported amounts of the assets are recovered or the liabilities are settled. These differences are 4. a. Interperiod tax allocation. b. Temporary differences. Permanent differences d. Intraperiod tax allocation