A company's defined benefit pension plan had a PBO of $271,000 on January 1, 2016. During 2016, pension benefits paid were $49,000. The discount rate for the plan for this year was 10%. Service cost for 2016 was $87,000. Plan assets (fair value) increased during the year by $52,000. The amount of the PBO at December 31, 2016, was: A. $222,000. B. $385,100. C. $336,100. D. None of these answer choices is correct.

A company's defined benefit pension plan had a PBO of $271,000 on January 1, 2016. During 2016, pension benefits paid were $49,000. The discount rate for the plan for this year was 10%. Service cost for 2016 was $87,000. Plan assets (fair value) increased during the year by $52,000. The amount of the PBO at December 31, 2016, was: A. $222,000. B. $385,100. C. $336,100. D. None of these answer choices is correct.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter19: Accounting For Post Retirement Benefits

Section: Chapter Questions

Problem 3RE: Pinecone Company has plan assets of 500,000 at the beginning of the current year and expects to earn...

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