1.

In a defined benefit plan, the relationship between the amount funded and the amount reported for pension expense is as follows:

Select one:

a.

Pension expense must equal the amount funded

b.

Pension expense will be less than the amount funded

c.

Pension expense will be more than the amount funded

d.

Pension expense may be greater than, equal to, or less than the amount funded

2.

On October 1, 2018, a firm issued $200,000 of 9% bonds. The bonds were dated January 1, 2018. Interest is paid annually on 12/31. A total of $210,500 in cash was received, which included accrued interest. What amount of premium or discount is associated with these bonds?

Select one:

a.

$10,500 premium

b.

$1,500 premium

c.

$2,000 premium

d.

$3,000 discount

e.

$13,500 premium