The exercise is related to pensions. Respond to the prompts below, and upload a document with your responses.

• List and define each of the five pension expense components (in your own words) and discuss how each component is calculated. (0.4 points per pension expense component)
• Explain of the impact of contributions to the pension plan and distributions to retirees on the PBO, Pension Asset balance, and pension expense. (1 point)
• Based on a sample of nonprofit organizations with defined benefit plans, Calabrese and Searing (2018) find the following:

Nonprofit organizations increase pension contributions to decrease excessive/unexpected profits and decrease pension contributions to enhance profitability in years they fail to meet profit expectations.

• Evaluate the finding and explain why the finding is or is not reasonable. (2 points)