The following information pertains to Hopson Co.'s pension plan: Actuarial estimate of projected benefit obligation at 1/1/15 Pension plan assets at 1/1/11 $ 800,000 $ 700,000 $ 120,000 10 Other Comprehensive Income-Gain/Loss at 1/1/15 (credit) Average remaining service life of active employees in years In the calculation of pension expense, the amortization related to the corridor has the following effect on pension expense: $0 and no change to pension expense. increases pension expense $4,000, decreases pension expense $4,000. O increases pension expense $5,000.
The following information pertains to Hopson Co.'s pension plan: Actuarial estimate of projected benefit obligation at 1/1/15 Pension plan assets at 1/1/11 $ 800,000 $ 700,000 $ 120,000 10 Other Comprehensive Income-Gain/Loss at 1/1/15 (credit) Average remaining service life of active employees in years In the calculation of pension expense, the amortization related to the corridor has the following effect on pension expense: $0 and no change to pension expense. increases pension expense $4,000, decreases pension expense $4,000. O increases pension expense $5,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please Correct answer With Explanation do not give solution in images format
Transcribed Image Text:The following information pertains to Hopson Co.'s pension plan:
Actuarial estimate of projected benefit obligation at 1/1/15
Pension plan assets at 1/1/11
$ 800,000
$ 700,000
$ 120,000
10
Other Comprehensive Income-Gain/Loss at 1/1/15 (credit)
Average remaining service life of active employees in years
In the calculation of pension expense, the amortization related to the corridor has the following effect on pension expense:
$0 and no change to pension expense.
increases pension expense $4,000,
decreases pension expense $4,000.
O increases pension expense $5,000.
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