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A company's defined benefit pension plan had a PBO of $265,000 on January 1, 2009. During 2009, pension benefits paid we...

A company's defined benefit pension plan had a PBO of $265,000 on January 1, 2009. During 2009, pension benefits paid were $40,000. The discount rate for the plan for this year was 10%. Service cost for 2009 was $80,000. Plan assets (fair value) increased during the year by $45,000. The amount of the PBO at December 31, 2009, was

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Answer #1

Solution :

The amount of the PBO at December 31, 2009, was = $ 331,500

Please find the attached screenshot of the excel sheet containing the detailed calculation for the solution.

30.10.2019 - Microsoft Excel X FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW B DE F Statement showing calculation of

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