The following amounts have been abstracted from a firms pension work paper for the year ended December 31, 2016:

Pension expense $ 75,000

Employer contribution 45,000

Other comprehensive income: prior service cost 8,000

Other comprehensive income: unexpected gains (losses) 63,000

Pension asset (liability) at January 1, 2016 (90,000)

Accumulated other comprehensive income: prior service cost(at 1/1/16) 80,000

In the journal entry to record pension expense for 2016, the pension asset/liability account should be

A. credited for $22,000.

B.credited for $30,000.

C. debited for $25,000.

D. debited for $41,000.

Which of the following statements is correct?

Amortization of prior service cost decreases the net assets in the pension trust.

The actual return on pension assets is not taxable to the pension trust.

A and B.

Neither A nor B.

Which of the following statements is correct?

The probability of amortizing unexpected actuarial gains (losses) increases as the total amount of the unexpected gain (loss) increases.

Employers do not want to amortize unexpected actuarial gains (losses).

A and B.

Neither A nor B.

Which of the following statements is correct?

Unexpected actuarial gains and losses are amortized in the same year that the gains and losses are determined.

Once an unexpected actuarial gain or loss is amortized, it will continue to be amortized every year until the amount of the unexpected actuarial gain or loss is zero.

A and B.

Neither A nor B.

Which of the following statements is correct?

The actual return is reported on the pension trusts statement of earnings.

When unexpected actuarial gains or losses are amortized, the amount that represents the corridor amount is not amortized.

A and B.

Neither A nor B.

Which of the following statements is correct?

The period used to amortize prior service cost does not include employees who began working for the company after the prior service cost amendment was passed.

A prior service cost amendment is accounted for and reported as a change in accounting estimate.

A & C

Neither A or C

Which of the following statements is correct?

The actual return on pension assets exhibits more volatility than the expected return.

Equity investments in pension trusts are classified into trading and available for sale.

A and B.

Neither A nor B.

Which of the following events increases the projected benefit obligation of a pension trust?

The actuary increases the discount rate.

Employees worked this year.

A and B.

Neither A nor B.