The projected benefit obligation and plan assets were $100 million and $90 million, respectively, at the beginning of the year. Due primarily to a less favorable stock market performance in recent years, there also was a net loss of $20 million. On average, employees remaining service life with the company is 5 years.

As a result of the net loss, what was the increase or decrease in pension expense for the year?

Group of answer choices

$10 million increase

$2 million decrease

$2 million increase

$10 million decrease

A company has a defined benefit pension plan. On December 31 (the end of the fiscal year), the company received the PBO report from the actuary. Among the information included in the report were the following items: ending PBO, $130,000; benefits paid to retirees, $40,000; interest cost, $7,800. The discount rate applied by the actuary was 6%. What was the beginning PBO?

Group of answer choices

$170,000

$130,000

$90,000

$97,800

A company issued 15,000 shares of its $5 par value common stock having a fair value of $18 per share and 20,000 shares of its $15 par value preferred stock having a fair value of $25 per share for a lump sum of $740,000. How much of the proceeds would be allocated to the common stock?

Group of answer choices

$259,481

$480,519

$270,000

$244,481

What is the effect of the declaration and subsequent issuance of a 5% stock dividend on Retained Earnings and Paid-In Capital?

Group of answer choices

an increase to Retained Earnings and a decrease to Paid-in Capital

no effect on Retained Earnings and no effect on Paid-in capital

no effect on Retained Earnings and an increase to Paid-in Capital

a decrease to Retained Earnings and an increase to Paid-in Capital

Presented below is information related to a company (in thousands): Common Stock, $1 par $8,000 Paid-in Capital in Excess of Par Common Stock 5,040 Paid in Capital in Excess of Cost Treasury Stock 320 Retained Earnings 9,300 Treasury Common Stock (at cost) 800

The total stockholders equity of the company is

$21,220

$22,820

$21,860

$23,460

When a firm issues compensatory stock options to an employee and the options are subsequently forfeited, the correct accounting treatment (assuming no forfeiture estimate has been made to date) is to:

Group of answer choices

Reclassify the additional paid-in capital accounts to reflect the forfeited stock options.

Record no journal entry.

Recognize all remaining compensation expense.

n determining earnings per share, interest expense, not of applicable income taxes, on convertible debt that is dilutive should be:

Group of answer choices

Deducted from net income for both basic earnings per share and diluted earnings per share.

Added back to net income for diluted earnings per share, and ignored for basic earnings per share.

Added back to net income for both basic earnings per share and diluted earnings per share.

Deducted from net income for basic earnings per share, and ignored for basic diluted earnings per share.