What are the three basic components of pension expense?

Select one:

a. Service cost, benefits paid, and expected return on plan assets

b. Service cost, benefits paid, and actual return on plan assets

c. Service cost, interest cost, and actual return on plan assets

d. Service cost, interest cost, and expected return on plan assets

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Actuarial gains and losses arise from:

Select one:

a. Changes in pension plan details

b. Changes in mortality rates

c. Changes in inflation rates

d. All of the above

Question 30

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Companies are required to report total pension assets and pension liabilities on their balance sheets.

Select one:

True

False

Question 31

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Sharp, Inc., reported the following items in the 2014 pension footnote (in millions).

Service cost	$ 976
Benefits paid to retirees	155
Interest cost	775
Actual returns on pension plan assets	1,003
Expected returns on pension plan assets	1,132
Amortization of deferred amounts	$ 42

The company's pension expense for the year is:

Select one:

a. $976 million

b. $774 million

c. $661 million

d. $903 million

Question 32

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Sharp, Inc., reported the following items in the 2014 pension footnote (in millions).

Service cost	$ 976
Benefits paid to retirees	155
Interest cost	775
Actual returns on invested assets	1,003
Expected returns on invested assets	1,132
Company contributions	950
Actuarial loss	$ 42

The increase in the company's projected benefit obligation during the year is:

Select one:

a. $661 million

b. $1638 million

c. $1793 million

d. $1948 million

Question 33

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Sharp, Inc., reported the following items in the 2014 pension footnote (in millions).

Service cost	$ 976
Benefits paid to retirees	155
Interest cost	775
Actual returns on invested assets	1,003
Expected returns on invested assets	1,132
Company contributions	950
Actuarial loss	$ 42

The increase in the company's plan assets during the year is:

Select one:

a. $950 million

b. $1953 million

c. $1798 million

d. $1927 million