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A company's defined benefit pension plan had a projected benefit obligation (PBO) of $350,000 on January 1, Year 1. During Year 1, pension benefits paid
A company's defined benefit pension plan had a projected benefit obligation (PBO) of $350,000 on January 1, Year 1. During Year 1, pension benefits paid were $60,000, The discount rate for the plan for Year 1 was 11%. Service cost for the year was $90,000. Plan assets (fair value) increased during the year by $50,000. What was the PBO at December 31, Year 1?
A. $290,000 B. $418,500 C. $380,000 D. $368,500
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