Ask Question
BusinessBusiness
Today, 10:37

A company's defined benefit pension plan had a pension benefit obligation (PBO) of $265,000 on 1/1/2018. During 2018, pension benefits paid were $40,000. The discount rate for the plan for this year was 10%. Service cost for 2018 was $80,000. Plan assets (fair value) increased during the year by $45,000. The amount of PBO at December 31, 2018 was what?

+5
Answers (1)
  1. Today, 11:04
    0
    The pension benefit obligation will be $331500

    Explanation:

    We have given PBO = $265000

    Less pension benefits paid = $40000

    Discount rate = 10% = 0.01

    Service cost = $80000

    Interest cost = $265000*0.01 = $26500

    We have to find the amount of PBO

    So the pension benefit obligation PBO will be = $265000+$80000+$26500-$40000 = $331500

    So the pension benefit obligation will be $331500
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “A company's defined benefit pension plan had a pension benefit obligation (PBO) of $265,000 on 1/1/2018. During 2018, pension benefits paid ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Which type of graphic is most effective for showing attributes?
Answers (1)
A swimming pool company: a. Weekly design and printing needs, purchase decisions may be made by a marketing professional. b. High-end design and inexpensive printing needs, purchase decisions made by owner. c.
Answers (1)
A checking account lets you have?
Answers (1)
On December 31, Strike Company has decided to discard one of its batting cages. The equipment had an initial cost of $236,300 and has accumulated depreciation of $212,670. Depreciation has been recorded up to the end of the year.
Answers (1)
Which loan option would you recommend for cesar? provide three reasons to explain your recommendation?
Answers (1)
New Questions in Business
Ken believes his company's overhead costs are driven (affected) by the number of direct labor hours because the production process is very labor intensive.
Answers (1)
Last month, Vern's Assembly Department had a unit materials cost of $4.00 and a unit conversion cost of $5.00.
Answers (1)
EA4. LO 2.2Hicks Contracting collects and analyzes cost data in order to track the cost of installing decks on new home construction jobs. The following are some of the costs that they incur.
Answers (1)
A company's defined benefit pension plan had a pension benefit obligation (PBO) of $265,000 on 1/1/2018. During 2018, pension benefits paid were $40,000. The discount rate for the plan for this year was 10%. Service cost for 2018 was $80,000.
Answers (1)
Which of the following is not one of the steps for recognizing revenue? Identify the performance obligations of the contract. Identify the contract with the customer.
Answers (1)
Home » Business » A company's defined benefit pension plan had a pension benefit obligation (PBO) of $265,000 on 1/1/2018. During 2018, pension benefits paid were $40,000. The discount rate for the plan for this year was 10%. Service cost for 2018 was $80,000.
Sign Up Forgot Password?