John Company adopted a defined benefit pension plan on January 1, 2015, and prior service credit was granted to employees. The present value of that prior service obligation as of January 1, 2015 was $1,400,000 and is being amortized by the straight-line method over the remaining 20-year service life of the company's active employees. Additional information relating to the company's pension plan for 2015 is presented below:
Annual service cost$132,000
Contribution to the plan (December 31, 2015)390,000
Interest cost10%
Expected (and actual) return on plan assets12%
?
What amount should be recorded in Prepaid/Accrued Pension Cost when recording the 2015 pension expense and funding at December 31, 2015?
A. $1,200
B. $48,000
C. $87,000
D. $94,800
Answer: B
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a. language b. analog c. personal d. digital
Inputting a range of numbers comprising a batch and then inputting each serially numbered document is characteristic of the control plan called:
A. cumulative sequence check B. batch sequence check C. suspense file of missing numbers D. computer agreement of batch totals
A corporation can earn 7.50% if it invests in municipal bonds. The corporation can also earn 8.20% (before-tax) by investing in preferred stock. Assume that the two investments have equal risk. What is the break-even corporate tax rate that makes the corporation indifferent between the two investments? Assume a 70.00% dividend exclusion for tax on dividends. (Do not round your intermediate answer and round your final answer to two decimal places.)
A. 28.74% B. 31.02% C. 28.46% D. 27.89% E. 35.28%
Summing Up Social Responsibility (Scenario)Max Proffit, director of research and development for National Products Company, that is into producing hiking gears has learned that a new material has been developed in his department that appears to make the ropes and slings more durable. He has discussed this development with his two assistants, Susie Merriweather and Moe Gaines, and Rush Onward, vice president of product development. Susie has stated her opposition to the use of the new material because its durability has not yet been tested and has not been certified by the company's third-party testing laboratory. Moe argues that the initial tests that their R&D department completed indicate minimal problems with durability. Rush states that in several meetings he has recently attended,
the company president had repeatedly emphasized the need to increase earnings per share. Rush tells Max that a decision has to be made within the week about the new material's use by the Company.If Max resists his impulse to okay the use of the uncertified material because of the need for increased earnings per share he ________. A. is a social entrepreneur B. has a strong ego strength C. is a whistle-blower D. has an external locus of control