The company has a defined benefit plan Salary at the end of 2005 $ 85,000 Employment started at the beginning of 2001 Retirement expected after 20 years of service Retirement year expected to be 2020 Retirement period is expected to be 25 years Interest Rate 8.0% Benefits are calculated as a formula as the product of: Service already provided 5 years Percentage 2.5% Final year's salary is projected to be $430,000 1. What is the PBO balance at the end of 2005 (this marks the end of the 5th year of service already provided)? A. $35,754 B. $180,875 C. $83,782 D. $195,346 2. What is the interest cost associated with the PBO for 2006? Enter the amount as a positive value with no symbols. 3. See the change in facts below for the remainder of this problem set. What is the gain or loss on BPO due to this pension plan amendment? Change made at the END of 2006: Expected salary at retirement date $ 460,000 A. $65,203 Gain on PBO B. $17,663 Loss on PBO C. $69,894 Gain on PBO D. $16,355 Loss on PBO 4. What is the amount of increase in the PBO due to the service cost of working an additional 5. See the change in facts below for the remainder of this problem set. What is the amount of Prior Service Cost related to this plan amendment? Percentage of service yrs. & salary 3.0% Change made at the beginning of 2008 A. $63,194 B. $65,203 C. $24,728 D. $54,167 6. What is the revised interest cost associated with the PBO for 2008 due to the amendment in Question #5? Enter the amount as positive with no symbols. 7. What is the PBO balance at the end of 2008? A. $437,471 B. $467,992 C. $389,994 D. $409,500