CFAI Sample 1 Q21 WRONG???

What am I missing here, shouldn’t return on Asset be taken off the exp. not added to it??? Question Based on Exhibit 1, the underlying economic pension expense ($ millions) for Duban for 2007 would be closest to: Select exactly 1 answer(s) from the following: A. 187. B. 192. C. 233. D. 274. Feedback: You have answered incorrectly. Correct answer = D “Understanding Retirement Benefit Accounting and Disclosures for Financial Analysis,” Thomas R. Robinson, Paul Munter, and Julia Grant 2008 Modular Level II, Vol. 2, pp. 124, 130 Study Session 6-24-f calculate the underlying economic pension and other post-employment expense (income) based upon disclosures after removing the effect of amortized items and smoothing mechanisms The economic pension expense is calculated as follows: Service Cost 86 Interest Cost 147 Actual Return on Plan Assets 41 Economic Pension Expense 274

The return is -41, so it’s added to pension expense.

wasnt the return negative?

oh yah dang…damn it…that makes 4 stupid mistakes…

Ya, should be B.

oh, i didn’t take the test, I don’t see the negative.

… LoL … You did ask the same question as mine (yesterday) …,742404