9) If a company's deferred tax asset is not reduced by a valuation allowance, the...

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9) If a company's deferred tax asset is not reduced by a valuation allowance, the company believes it is: A) Probable that sufficient tamable income will be generated in future years to realize the full tax benefit. B) Probable that sufficient financialincome will be generated in future realize the full tax benefit. years to C) More likely than not that sufficient Aanable income will be generated in future years to realize the full tax benefit. D) More likely than not that sufficient financialincome will be generated in future years to realize the full tax benefit. 10) Harvey Hotels provides a defined benefit pension plan for its employees. For the most recent year, the following information was available with regard to the plan: (o1 > Service cost: $6.2 million > Expected return on plan assets: $1.2 million > Actual retum on plan assets: $1 million > Interest cost: $1.4 million > Payments to retired employees: $2 million >Amortization of prior service cost: $1.1 million. What amount should Harvey Hotels report as pension exnense in its income statement for the year? A) $7.7 million B) $7.5 million C) $8.2 million D) $8.6 million 11) The "attribution period" for postretirement benefits spans each year of service from the employee's date of hire to the employee's date of: A) Retirement. C) Death. (1) B) Full eligibility. D) Termination. 12 12) The net pension liability (PBO minus plan assets) is increased by: A) Expected returm on plan assets. C) Benefits paid to employees. B) Service cost. D) Cash contributions to plan assets. 13) A company's defined benefit pension plan had a projected benefit obligation ("PBO") of $265,000 on January 1, 2018. During 2018, pension benefits paid were $40,000. The discount rate for the plan for the year was 10%. Service cost for 2018 was $80,000, The amount of the PBQ at December 31, 2018, was: A) $225,000. B) $305,000. C) $331,500. D) $345,000

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