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valina [46]
3 years ago
13

Beale Management has a noncontributory, defined benefit pension plan. On December 31, 2018 (the end of Beale's fiscal year), the

following pension-related data were available: Projected Benefit Obligation ($ in millions) Balance, January 1, 2018 $ 460 Service cost 48 Interest cost, discount rate, 5% 23 Gain due to changes in actuarial assumptions in 2018 (14 ) Pension benefits paid (23 ) Balance, December 31, 2018 $ 494
Business
1 answer:
uysha [10]3 years ago
8 0

Answer: The projected benefit obligation is $494 millions

Explanation:

Using the formula

Closing PBO = Opening PBO + S + I -B ± A

Where PBO = Projected Benefit Obiligation, S = service cost, I = interest cost, B = Pension benefit paid, A = Gain due to changes in actuarial assumptions

Interest cost = 5% of 460

= (5÷ 100) = 0.05 × 460

= 23

Closing PBO = 460 + 48 + 23 - 23 - 14

= $494

There is an increase in the Projected benefit obligation to $494 million

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3 years ago
Read 2 more answers
According to classical economics, a decrease in aggregate demand causes the price level to _____________ in the long run. On the
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Sustainable Growth Rate You have located the following information on Rock Company: debt ratio = 46.5%, capital intensity ratio
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Answer:

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