Reference no: EM133198255

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

REQUIRED: Determine the pension expense that the company will report in the Income Statement for the current period.