Lacy construction has a noncontributory, defined benefit pension plan. at december 31, 2018, lacy received the following information: projected benefit obligation ($ in millions) balance, january 1 $ 360 service cost 60 prior service cost 12 interest cost (7.5%) 27 benefits paid (37 ) balance, december 31 $ 422 plan assets ($ in millions) balance, january 1 $ 240 actual return on plan assets 27 contributions 2018 60 benefits paid (37 ) balance, december 31 $ 290 the expected long-term rate of return on plan assets was 10%. there were no aoci balances related to pensions on january 1, 2018. at the end of 2018, lacy amended the pension formula creating a prior service cost of $12 million. assume lacy construction prepares its financial statements according to international financial reporting standards and that the actuary's discount rate is the rate on high quality corporate bonds. required: 1. determine lacy’s net pension cost for 2018. 2. prepare the journal entry(s) to record lacy’s net pension cost, gains or losses, prior service cost, funding, and payment of retiree benefits for 2018.

Benton company (bc), a calendar year entity, has one owner, who is in the 37% federal income tax bracket (any net capital gains or dividends would be taxed at a 20% rate). bc's gross income is $395,000, and its ordinary trade or business deductions are $245,000. ignore the standard deduction (or itemized deductions) and the deduction for qualified business income. if required, round computations to the nearest dollar. a. bc is operated as a proprietorship, and the owner withdraws $100,000 for personal use. bc's taxable income for the current year is $ , and the tax liability associated with the income from the sole proprietorship is $ . b. bc is operated as a c corporation, pays out $100,000 as salary, and pays no dividends to its shareholder. bc's taxable income for the current year is $ , and bc's tax liability is $ . the shareholder's tax liability is $ . c. bc is operated as a c corporation and pays out no salary or dividends to its shareholder. bc's taxable income for the current year is $ , and bc's tax liability is $ . d. bc is operated as a c corporation, pays out $100,000 as salary, and pays out the remainder of its earnings as dividends. bc's taxable income for the current year is $ , and bc's tax liability is $ .

10. which of the following is true regarding preretirement inflation? a. defined-benefit plans provide more inflation protection than defined-contribution plans. b. because of preretirement inflation, possible investment-related growth is increased for defined-contribution plans. c. all types of benefits are designed to cope with preretirement inflation. d. preretirement inflation is generally reflected in the increase in an employee's compensation level over a working career.

Why do police officers get paid less than professional baseball players?