Louie Company's defined benefit pension plan had a PBO of $266,000 on January 1, 2021. During 2021, pension benefits paid were $45,000. The discount rate for the plan for this year was 10%. Service cost for 2021 was $83,000. Plan assets (fair value) increased during the year by $49,000. The amount of the PBO at December 31, 2021, was: Multiple Choice $221,000. $330,600. $375,600. None of these answer choices are correct.

Louie Company's defined benefit pension plan had a PBO of $266,000 on January 1, 2021. During 2021, pension benefits paid were $45,000. The discount rate for the plan for this year was 10%. Service cost for 2021 was $83,000. Plan assets (fair value) increased during the year by $49,000. The amount of the PBO at December 31, 2021, was: Multiple Choice $221,000. $330,600. $375,600. 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 3MC

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