Hi, can you explain how to calculate PBO at the end of the year? Why we minus contribution?

Use the following information for questions 77 and 78.

On January 1, 2013, Newlin Co. has the following balances:

Projected benefit obligation $2,100,000

Fair value of plan assets 1,800,000

The settlement rate is 10%. Other data related to the pension plan for 2013 are:

Service cost $180,000

Amortization of prior service costs due to increase in benefits 60,000

Contributions 300,000

Benefits paid 155,000

Actual return on plan assets 237,000

Amortization of net gain 18,000

77. The balance of the projected benefit obligation at December 31, 2013 is

a. $2,635,000.

b. $2,335,000.

c. $2,305,000.

d. $2,287,000.

78. The fair value of plan assets at December 31, 2013 is

a. $2,380,000.

b. $2,200,000.

c. $2,182,000.

d. $2,164,000.