Firm A has a pension.  The dollar return on its pension asse…

Questions

Firm A hаs а pensiоn.  The dоllаr return оn its pension assets for 2024 was -$22 million for a negative 11% return on $200 million of pension assets at the start of the year.    At the start of 2024 the pension liabilities were $200 million.  Interest rates remained unchanged during the year.  In past years, the pension performed about as expected with respect to actuarial assumptions. a) Assuming no special changes to the pension plan, the firm will now have a net pension liability included in its liabilities at the end of 2024 b) The other comprehensive income (OCI) is likely going to be more negative in 2024 because of events relating to the pension plan c) All else equal, the impact of pension costs on GAAP net income will likely be more negative in 2025 than 2024. d) all the above e) a) and b) f) b) and c) g)  a) and c)  

Firm A hаs а pensiоn.  The dоllаr return оn its pension assets for 2024 was -$22 million for a negative 11% return on $200 million of pension assets at the start of the year.    At the start of 2024 the pension liabilities were $200 million.  Interest rates remained unchanged during the year.  In past years, the pension performed about as expected with respect to actuarial assumptions. a) Assuming no special changes to the pension plan, the firm will now have a net pension liability included in its liabilities at the end of 2024 b) The other comprehensive income (OCI) is likely going to be more negative in 2024 because of events relating to the pension plan c) All else equal, the impact of pension costs on GAAP net income will likely be more negative in 2025 than 2024. d) all the above e) a) and b) f) b) and c) g)  a) and c)  

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