C . accumulated benefit obligation . D . unfunded projected benefit obligation .
44 ) On January 1 , 2008 , Pratt Corp . adopted a defined-benefit pension plan . The plan ‟ s service cost of $ 300,000 was fully funded at the end of 2008 . Prior service cost was funded by a contribution of $ 120,000 in 2008 . Amortization of prior service cost was $ 48,000 for 2008 . What is the amount of PrattТs prepaid pension cost at December 31 , 2008 ?
A . $ 168,000 B . $ 72,00 C . $ 120,000 D . $ 180,000
45 ) Effective January 1 , 2007 , Quayle Co . established a definedbenefit plan with no retro-active benefits . The first of the required equal annual contributions was paid on December 31 , 2007 . A 10 % discount rate was used to calculate service cost and a 10 % rate of return was assumed for plan assets . All information on covered employees for 2007 and 2008 is the same . How should the service cost for 2008 compare with 2007 , and should the 2007 balance sheet report an accrued or a prepaid pension cost ?
Service Cost for 2008 Compared to 2007 | Pension Cost Reported on the 2007 Balance Sheet
A . Greater than | Accrued B . Equal to | Accrued C . Equal to | Prepaid D . Greater than | Prepaid