alleryStart learning →Service cost is 10,000 and cash contributed to plan assets is 8,000. What is the P&L charge?
A8,000
B2,000
C10,000
D18,000
Answer & Solution
Correct answer: C. 10,000
The expense equals the service cost of 10,000; the 8,000 contribution only reduces the net liability, leaving 2,000 extra liability.
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