Reference no: EM133209407
QUESTION 1
Discuss the three main types of leases that may apply to the landlord. How do they differ?
QUESTION 2
ABC, Inc. offers a defined benefit pension plan to its employees. Some data related to this plan for the current year is summarized below.
Expected return rate: 10%
Real rate of return (actual return): 12%
Discount rate: 10.5%
Amortization of prior period cost (PSC) $5,000
Amortization of unrecognized gain $2,000
Payments to retirees $75,000
Employer contributions to the trust $50,000
Balance of Pension Obligation (BPO) at the beginning of the year: $450,000
Balance of Plan assets (trust) at beginning of year: $200,000
Service cost at the beginning of the year: $100,000
Determine the pension expense that the company will report in the Income Statement for the current period.