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TRUE OR FALSE armount of the vested benefit obligation is less than the projected benefit obligation and more than the accumulated benefit obligation. Capacitantes 3:
TRUE OR FALSE armount of the vested benefit obligation is less than the projected benefit obligation and more than the accumulated benefit obligation. Capacitantes 3: El estudiante identincar las eine, variables que podrian cambiar d balance en la cuenta de deuda por beneficios proyectados. SELECT THE BEST ANSWER (SHOWS COMPUTATIONS ARE REQUIRED) 1. Interest cost will: A. Increase the PBO and increase pension expense. B. Increase pension expense and reduce plan assets. C. Increase the PBO and reduce plan assets. D. Increase pension expense and reduce the return on plan assets. 2. The PBO is increased by: A. An increase in the average life expectancy of employees. B. Amortization of prior service cost. C. An increase in the actuary's assumed discount rate. D. A return on plan assets that is lower than expected 3. Mars Inc. has a defined benefit pension plan. On December 31 (the end of the fiscal year), the company received the PBO report from the actuary. The following information was included in the report: ending PBO, $110,000; benefits paid to retirees, $10,000; interest cost, $7,.200. The discount rate applied by the actuary was 8%, what was the beginning PBO? A. $ 90,000 B. $100,000 C. $107,200 D. $112,000 4. Louie Company has a defined benefit pension plan. On December 31 (the end of the fiscal year), the company received the PB0 report from the actuary. The following information was included in the report: ending PBO, $110,000; benefits paid to retirees, $10,000; interest cost, $8,000. The discount rate applied by the actuary was 8%, what was the service cost for the year? A. $2,000 B. $12,000 C. $18,000. D. $92,000. TRUE OR FALSE 5. An upward revision of inflation and compensation trends would likely cause a gain in the pension benefit obligation
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