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Unformatted text preview: 197,000.
5. Interest cost will:
A. Increase the PBO and increase pension expense.
B. Increase pension expense and reduce plan assets.
C. Increase the PBO and reduce plan assets.
D. Increase pension expense and reduce the return on plan assets.
6. Pension gains related to plan assets occur when:
A. The return on plan assets is higher than expected.
B. The vested benefit obligation is less than expected.
C. Retiree benefits paid out are less than expected.
D. The accumulated benefit obligation is more than expected.
7. The EPBO for a particular employee on January 1, 2011, was $30,000. The APBO at
the beginning of the year was $6,000. The appropriate discount rate for this
postretirement plan is 5%. The employee is expected to serve the company for a total of
twenty-five years with five of those years already served as of January 1, 2011. What is
the APBO at December 31, 2011?
D. $7,560. 2 8. The following information is available for the pension plan of Riley Company for the
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This note was uploaded on 08/10/2013 for the course ACTG 352 taught by Professor Clement,r during the Spring '08 term at University of Oregon.
- Spring '08