A Company's Defined Benefit Pension Plan Had a Projected Benefit

A company's defined benefit pension plan had a projected benefit obligation (PBO) of $350,000 on January 1,Year 1.During Year 1,pension benefits paid were $60,000,The discount rate for the plan for Year 1 was 11%.Service cost for the year was $90,000.Plan assets (fair value) increased during the year by $50,000.What was the PBO at December 31,Year 1?

A) $290,000
B) $368,500
C) $380,000
D) $418,500

Correct Answer:

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