Which of the following component refers to the services provided by the employees in the current period in a defined benefit plan?

A) Interest cost on pension obligations.

B) Income from plan assets.

• c) Current service cost.
• D) Amortization of actuarial gains and losses.

• 2. A company has a defined benefit pension asset of $1,300,000 at the beginning of the year. The company contributes $4,000,000 to the pension during the year and records a pension expense of $6,200,000. The closing balance of the defined benefit pension plan at year-end is therefore a:

  • A) $900,000 asset
  • B) $900,000 liability
  • c) $5,300,000 asset
  • D) $3,500.000 asset

  • 3. A company reported $350,000 of pension expense in its income statement. The balance sheet showed that the pension liability increased by $20,000 over the year.

    How much cash was paid to the pension trustee during the period?

    • A) $320,000
    • B) $330,000
    • c) $350,000
    • D) $370,000

    • 4.What is the pension expense for the following plan?

      "The plan requires the company to contribute $500 for each of its 1,000 employees

      The plan hopes to accumulate enough funds so that each retiree receives $20,000 in the future; the company has no obligation to guarantee the investment returns.

      • A) $20,000
      • B) $500,000
      • C) $500

      D) $20,000,000