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Unformatted text preview: 1. Which of the following statements typifies defined contribution plans? Investment risk is borne by the corporation sponsoring the plan. The plans are more complex than defined benefit plans. Present value factors are used to determine the annual contributions to the plan. The employer's obligation is satisfied by making the periodic contribution to the plan. 2. Consider the following: I. present value of vested benefits at present pay levels II. present value of non-vested benefits at present pay levels III. present value of additional benefits related to projected pay increases Which of the above constitutes the projected benefit obligation? III only. I, II. I, II, III. II only. 3. A company's defined benefit pension plan had a PBO of $265,000 on January 1, 2011. During 2011, pension benefits paid were $40,000. The discount rate for the plan for this year was 10%. Service cost for 2011 was $80,000. Plan assets (fair value) increased during the year by $45,000....
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This note was uploaded on 01/18/2012 for the course ACC 357 taught by Professor Staff during the Fall '11 term at Syracuse.
- Fall '11