Louie Company has a defined benefit pension plan. On December 31 (the end of the fiscal year), the company recelved the PBO report from the actuary. The following information was Included in the report: ending PBO, $110,000; benefits paid to retirees, $10,000; Interest cost, $8,000. The discount rate applied by the actuary was 8%. What was the service cost for the year? Multiple Choice $18,000. $92,000. $2,000. $12,000.

Louie Company has a defined benefit pension plan. On December 31 (the end of the fiscal year), the company recelved the PBO report from the actuary. The following information was Included in the report: ending PBO, $110,000; benefits paid to retirees, $10,000; Interest cost, $8,000. The discount rate applied by the actuary was 8%. What was the service cost for the year? Multiple Choice $18,000. $92,000. $2,000. $12,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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