medium · Financial Accounting stockholders-equity

Which of the following describes the 'Service Cost' component of the Net Periodic Pension Cost?

  1. The actual cash contributions made by the employer to the pension plan trust.
  2. The increase in the projected benefit obligation due to the passage of time.
  3. The actuarial present value of benefits attributed by the pension benefit formula to employee service during the current period.
  4. The total benefits paid out to retirees during the reporting period.

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