The following information pertains to Seda Companys pension plan: Actuarial estimate of projected benefit obligation at 1/1/14

Question:

The following information pertains to Seda Company’s pension plan:
Actuarial estimate of projected benefit obligation at 1/1/14 . $72,000
Service cost for 2014 ................. 18,000
Pension benefits paid on 12/31/14 ........... 15,000
Assumed ................ 10%

Required:
If no change in actuarial estimates occurred during 2014, how much would Seda’s projected benefit obligation be at December 31, 2014?

Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...