BIF 301-4: Financial Accounting and Reporting IV Course Materials & Test Answers | courses.christuniversity.in

The Cosby company has a defined benefit pension plan. On Jan 1 Year 1, a contractual provision was changed and the PBO increased at that moment by $400,000. Which of the following statements is true

Pension expense is increased immediately by $400000

Pension expense is never affected because the $400,000 is retained within AOCI on BS

Pension expense is not affected on Jan 1 Year one but is gradually increased over the next several years

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Pension expense is increased on Jan 1 Year one by a portion of the $400000 with the remaining amount added to pension expense over the next few years

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BIF 301-4: Financial Accounting and Reporting IV

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