Service cost for the year = Benefit paid + Interest cost
= $10000 + 8000 = $18,000
Option c. is correct answer.
22. Hunter Company has a defined benefit pension plan. On December 31 (the end of the fiscal year), the company receive...
Mars Inc. has a defined benefit pension plan. On December 31 (the end of the fiscal year), the company received the PBO report from the actuary. The following information was included in the report: ending PBO, $112,000; benefits paid to retirees, $13,500; interest cost, $9,100. The discount rate applied by the actuary was 10%. What was the beginning PBO?
M-Howard Inc. has a defined benefit pension plan. On December 31 (the end of the fiscal year), the company received the PBO report from the actuary. Among the information included in the report were the following items: ending PBO, $110,000; interest cost, $7,200. The discount rate applied by the actuary was 8%. What was the beginning PBO? a.$ 90,000 b.$100,000 c.$107,200 d.$112,000
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