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You see a company with a defined benefit pension plan with a large pension surplus as an asset on their balance sheet. When you examine
You see a company with a defined benefit pension plan with a large pension surplus as an asset on their balance sheet. When you examine their income statement you see no pension expense line item. Why?
A. Because the pension expense are over-funded. There is an immaterial negative expense that does not need to be reported
B. Because the pension expense is part of a COGS and/or SG&A expense
C. Because the pension expense is capitalized as research and development
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