1.Data for 2018 were as follows:

Projected benefit obligation (PBO), January 1, $240,000 and December 31, $270,000; pension plan assets (fair value) January 1, $180,000, and December 31, $230,000. The amount reported in the company's balance sheet at December 31 is:

Group of answer choices

A pension liability of $270,000

A pension liability of $40,000

A pension asset of $40,000

A pension asset of $230,000

2. Which item below is NOT an item which causes a change in the projected benefit obligation (PBO):

Group of answer choices

Service cost

Interest cost

Actual return on plan assets

Benefits paid to retirees