A company's defined benefit pension plan had a PBO of $269,000 on Jan A company's defined benefit pension plan had a PBO
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A company's defined benefit pension plan had a PBO of $269,000 on January 1,
2016. During 2016, pension benefits paid were $43,000. The discount rate for
the plan for this year was 8%. Service cost for 2016 was $89,000. Plan assets
(fair value) increased during the year by $51,000. The amount of the PBO at
December 31, 2016, was:
$226,000.
$379,520.
$336,520.
None of these answer choices is correct.
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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, $114,000; benefits
paid to retirees, $13,500; interest cost, $8,400. The discount rate applied by the
actuary was 10%. What was the beginning PBO?