Indicate with the appropriate letter the nature of each adjustment described below:
Type of Adjustment
A. Change in principle
B. Change in estimate
C. Correction of an error
D. Neither an accounting change nor an error

_____ 1. Change in actuarial assumptions for a defined benefit pension plan.
_____ 2. Determination that the projected benefit obligation under a pension plan exceeded the fair value of plan assets at the end of the previous year by $17,000. The only pension-related amount on the balance sheet was a net pension liability of $30,000.
_____ 3. Pension plan assets for a defined benefit pension plan achieving a rate of return in excess of the amount anticipated.
_____ 4. Instituting a pension plan for the first time and adopting GAAP for employers' accounting for defined benefit pension and other postretirement plans.

  • CreatedJuly 05, 2013
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