On January 1, 2018,Gillock Climbing Academy Instituted a Defined Benefit

Multiple Choice

On January 1, 2018,Gillock Climbing Academy instituted a defined benefit pension plan for its employees. The annual service cost for each year of 2018 and 2019 was $600,000. The interest rate used to determine the projected benefit obligation is 10%. Both the actual and the expected return on plan assets are 8% for both years. Gillock funded the plan in the amount of $400,000 each January 1, beginning on January 1, 2018.
-An employer reports a pension loss when:

A) a change in an assumption causes the projected benefit obligation to be less than expected.
B) the return on plan assets is lower than expected.
C) retiree benefits paid out are more than expected.
D) the accumulated benefit obligation is less than expected.