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16 April, 12:45

The following information pertains to Blum Company's defined benefit pension plan: PBO beginning balance: $100,000; current year service cost: $10,000, interest cost: $8,000; actuarial loss: $3,000, employer contributions to plan: $12,000, payments to retirees: $6,000. The ending balance of the company's PBO is

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  1. 16 April, 13:06
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    The ending balance=$115,000

    Explanation:

    Given dа ta::

    PBO beginning balance=$100,000

    Current year service cost=$10,000

    Interest cost = $8,000

    Actuarial loss=$3,000

    Employer contributions to plan=$12,000

    Payments to retirees=$6,000

    Required:

    The ending balance of the company's PBO=?

    Solution:

    The ending balance=Beginning balance+Current year service cost+Interest cost+Actuarial loss-Payments to retirees

    The ending balance=$100,000+$10,000 + $8,000+$3,000-$6,000

    The ending balance=$115,000
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