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The following incomplete (columns have missing amounts) pension spreadsheet is for the current year for First Republic Corporation (FRC). ($ in millions) Debit(Credit) PBO Plan
The following incomplete (columns have missing amounts) pension spreadsheet is for the current year for First Republic Corporation (FRC).
($ in millions) Debit(Credit) | PBO | Plan Assets | Prior Service Cost | Net (Gain)/Loss | Pension Expense | Cash | Net Pension (Liability)/Asset |
---|---|---|---|---|---|---|---|
Beginning balance | (720) | 30 | (92) | ||||
Service cost | 64 | ||||||
Interest cost | 36 | ||||||
Expected return on assets | 70 | ||||||
Gain/loss on assets | (4) | ||||||
Amortization of: | |||||||
Prior service cost | (9) | ||||||
Net gain/loss | 5 | ||||||
Loss on PBO | (10) | ||||||
Contributions to fund | (47) | ||||||
Retiree benefits paid | (67) | ||||||
Ending balance | 720 | (83) |
What was the actuary's interest (discount) rate?
9%
5%
10%
8%
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