Multiple Choice
Louie Company 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, $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.
Correct Answer:
Verified
Correct Answer:
Verified
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