Louie Company's defined benefit pension plan had a PBO of $272,000 on January 1, 2021. During 2021, pension benefits paid were $48,000. The discount rate for the plan for this year was 11%. Service cost for 2021 was $81,000. Plan assets (fair value) increased during the year by $46,000. The amount of the PBO at December 31, 2021, was: Multiple Choice $334,920. $382,920. $224,000. None of these answer choices are correct.

Louie Company's defined benefit pension plan had a PBO of $272,000 on January 1, 2021. During 2021, pension benefits paid were $48,000. The discount rate for the plan for this year was 11%. Service cost for 2021 was $81,000. Plan assets (fair value) increased during the year by $46,000. The amount of the PBO at December 31, 2021, was: Multiple Choice $334,920. $382,920. $224,000. None of these answer choices are 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 6E

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