80.2K

Verified Solution

Link Copied!

20. Interest cost included in pension ex pense recognized for a period by an employer sponsoring a defined-benefit pension plan represents the A) shortage between the expected and actual returns on plan assets. B) increase in the fair value of plan assets due to the passage of time. C) increase in the projected benefit obligation due to the passage of time D) amortization of the discount on accumulated OCI (PSC). 21. In determining the present value of the prospective benefits (often referred to as the projected benefit obligation), the following are considered by the actuary A) benefit provisions of the plan. B) retirement and mortality rate. C) interest rates D) all of these factors. 22. The amount to be recorded as the cost of an asset under capital lease is equal to the present value of the minimum lease payments or the fair value of the asset, whichever is lower. carrying value of the asset on the lessor's books. present value of the minimum lease payments. present value of the minimum lease payments plus the present value of any unguaranteed residual value. A) B) C) D) 23. The methods of accounting for a lease by the lessee are A) B) C) D) operating and capital lease methods. operating, sales, and capital lease methods. operating and leveraged lease methods. none of these. 24. Executory costs include A) property taxes. B) insurance. C) maintenance. D) all of these. 25. In computing the present value of the minimum lease payments, the lessee should A) use its incremental borrowing rate in all cases. use either its incremental borrowing rate or the implicit rate of the lessor, whichever is higher, assuming that the implicit rate is known to the lessee. B) C) use either its incremental borrowing rate or the implicit rate of the lessor D) whichever is lower, assuming that the implicit rate is known to the lessee. none of these

Answer & Explanation Solved by verified expert

See Answer