Which of the following statements pertaining to defined benefit pension plans is not correct?
A. A small change in the pension discount rate can shift the funded status of the pension from year to year.
B. A curtailment loss may occur because a division of a company is sold.
C. Pension expense may be allocated to different categories of expenses within an income statement.
D. A company may have multiple pension plans of which some may be overfunded and some may be underfunded and they are netted together to report the overall pension asset (liability).
Answer: D
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