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Presented below is pension information for Welch Company for the year 2008:

9. Presented below is pension information for Welch Company for the year 2008:
Actual return on plan assets $24,000
Interest on vested benefits 15,000
Service cost 30,000
Interest on projected benefit obligation 21,000
Amortization of prior service cost due to increase in benefits 18,000
The amount of pension expense to be reported for 2008 is
A) $93,000.
B) $69,000.
C) $60,000.
D) $45,000.
10. The following information is related to the pension plan of King, Inc. for 2008.
Actual return on plan assets $200,000
Amortization of unrecognized net gain 82,500
Amortization of unrecognized prior service cost 150,000
Expected return on plan assets 230,000
Interest on projected benefit obligation 362,500
Service cost 800,000
Pension expense for 2008 is
A) $1,195,000.
B) $1,165,000.
C) $1,030,000.
D) $1,000,000.
Use the following to answer question 11:
Barkley Corporation received the following report from its actuary at the end of the year:
December 31, 2007 December 31, 2008
Projected benefit obligation $1,600,000 $1,800,000
Market-related asset value 1,400,000 1,420,000
Accumulated benefit obligation 1,300,000 1,480,000
Fair value of pension plan assets 1,380,000 1,440,000
Prepaid pension cost 80,000 100,000
Assume that no prepaid or accrued pension cost exists on January 1, 2007.
11. The amount reported as the total pension liability at December 31, 2007 is
A) $   -0-.
B) $200,000.
C) $220,000.
D) $300,000.
13. On December 31, 2007, Patten Co. leased a machine from Bass, Inc. for a five-year period. Equal annual payments under the lease are $630,000 (including $30,000 annual executory costs) and are due on December 31 of each year. The first payment was made on December 31, 2007, and the second payment was made on December 31, 2008. The five lease payments are discounted at 10% over the lease term. The present value of minimum lease payments at the inception of the lease and before the first annual payment was $2,502,000. The lease is appropriately accounted for as a capital lease by Patten. In its December 31, 2008 balance sheet, Patten should report a lease liability of
A) $1,902,000.
B) $1,872,000.
C) $1,711,800.
D) $1,492,200.
Use the following to answer question 14:
On January 1, 2008, Dexter, Inc. signs a 10-year noncancelable lease agreement to lease a storage building from Garr Warehouse Company. Collectibility of lease payments is reasonably predictable and no important uncertainties surround the amount of costs yet to be incurred by the lessor.  The following information pertains to this lease agreement.
(a)     The agreement requires equal rental payments at the end of each year.
(b)     The fair value of the building on January 1, 2008 is $3,000,000; however, the book value to Garr is $2,500,000.
(c)     The building has an estimated economic life of 10 years, with no residual value. Dexter depreciates similar buildings on the straight-line method.
(d)     At the termination of the lease, the title to the building will be transferred to the lessee.
(e)     Dexter's incremental borrowing rate is 11% per year. Garr Warehouse Co. set the annual rental to insure a 10% rate of return. The implicit rate of the lessor is known by Dexter, Inc.
(f)     The yearly rental payment includes $10,000 of executory costs related to taxes on the property.
14. From the lessor's viewpoint, what type of lease is involved?
A) Sales-type lease
B) Sale-leaseback
C) Direct-financing lease
D) Operating lease

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