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10) Which of the following statements is typical for defined contribution plans? a) Investment risk...

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Accounting

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10) Which of the following statements is typical for defined contribution plans? a) Investment risk is borne by the corporation sponsoring the plan. b) Present value factors are used to determine the annual contributions to the plan. c) The employer's obligation is satisfied by making the periodic contribution to the plan. d) The plans are more complex than defined benefit plans. 11) Which of the following describes defined benefit pension plans? a) The investment risk is borne by the employee b) The investment risk is borne by the employer. c) Retirement benefits depend on the individual's account balance. d) The plans are simple and easy to construct. 2) Sierra Inc.'s defined benefit pension plan had a PBO of $265,000 on January 1, 2018. During 2018, pension benefits paid to retired employees were $40,000. The discount rate for the plan for this year was 10%. Service cost for 2018 was $80,000. There were no prior service costs and no gains or losses on the PBO. The amount of the PBO at December 31, 2018, was: a) $225,000. b) 331,500. c) $ 305,000. d) $411,500

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