Which of the following statements is correct with respect to a defined contribution plan?
A. The anticipated life span of the employees after retirement must be taken into consideration in determination of pension expense for a defined contribution pension plan.
B. The employer receives a tax deduction for amounts contributed to the pension plan trust, and subsequent investment returns do not generate tax for the employer.
C. The return on the pension fund impacts the employer's periodic pension expense for defined contribution pension plans.
D. The payments made by the employer to fund a defined contribution pension plan create a pension fund asset on the balance sheet of the employer.
Answer: B
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