The actuarial valuation report of an entity shows the following Present value of defined benefit obligation (PV of DBO, Jan. 1 280,000 Current service cost 50,000 Discount rate Benefits paid to retirees 120,000 Decrease in PV of DEC during the year due to exchange in actuarial s0,000 assumptions How much is the present value of the defined benefit obligation as of the year-end? O 190,00 O 240,800 O 160,000 O 290,800

The actuarial valuation report of an entity shows the following Present value of defined benefit obligation (PV of DBO, Jan. 1 280,000 Current service cost 50,000 Discount rate Benefits paid to retirees 120,000 Decrease in PV of DEC during the year due to exchange in actuarial s0,000 assumptions How much is the present value of the defined benefit obligation as of the year-end? O 190,00 O 240,800 O 160,000 O 290,800

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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Concept explainers

Employee Benefits

In an organization employees are the most important resource and most important asset. They can lead an organization to the sky or can be the reason for unsuccessful of business. Therefore, it is very much important that employees of an organization should be satisfied by the environment of the organization and most importantly with the salary, wages incentives, etc.

Question

The actuarial valuation report of an entity shows the following
Present value of defined benefit obligation (PV of DBO, Jan. 1
280,000
Current service cost
5000
Discount rate
Benefits paid to retirees
120,000
Decrease in PV of DEC during the year due to exchange in actuarial
s0,000
assumptions
How much is the present value of the defined benefit obligation as of the year-end?
O 19000
O 240,800
O 160,000
O 290,800

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