Real World Case 17-9-Pension Amendment

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Real World Case 17-9- Pension amendment Requirement 1 Pension expense is part of a company’s compensation plan for an employee’s service just like wages and commissions. While wages and commissions get paid to the employee at regular intervals throughout their employment, the pension benefit is not paid until after many years of service to the company (Spiceland, Sepe, & Nelson, 2011). When figuring out the pension expense five components come into play: service cost, interest cost, return on plan assets, amortization of prior service cost, and amortization of a net loss or net gain. When General Motors Corp. modified its pension benefits, it affected the amortization of prior service cost. The prior service cost is the amount of increase

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