Harms Inc Reported in Its 2006 Annual Report the Following Information

Harms Inc. reported in its 2006 annual report the following information:
$$\begin{array}{l}\text { Plan Status: December 31, } 2006\\\begin{array} { | l | r | } \hline \text { Accumulated Benefit Obligation (ABO) } & \$ 90 \text { Million } \\\hline \text { Projected Benefit Obligation (PBO) } & \$ 95 \text { Million } \\\hline \text { Plan Assets (at fair value) } & \$ 80 \text { Million } \\\hline \text { Unrecognized transition asset } & \$ 11 \text { Million } \\\hline \text { Unrecognized actuarial losses } & \$ 1 \text { Million } \\\hline & \\\hline \text { Assumptions: } & \\\hline \text { discount rate } & 8 \% \\\hline \text { return on assets } & 9 \% \\\hline \text { compensation growth } &5\% \\\hline\end{array}\end{array}$$
-The estimated interest cost for 2007 is:

A) 7.95M.
B) 7.60M.
C) 7.36M.
D) 7.20M.

Correct Answer:

Verified

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