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The following information pertains to Metion Cos pension plan Actuarial estimate of projected benefit obligation at 1/1/11 $72,000 $70,000 10% $18,000 $15,000 Plan assets 1/1/11 Assumed discount rate Service costs for 2012 Pension benefits paid during 2011 Mellons interest cost at December 31, 2011 was $7,200 $7,000 $1,500 $1,800. a. b, C. d.

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Answer #1

ans: a $7,200

workings:

pension interest cost=project benefit obligation*Discount rate

given project benefit obligation=$72,000

Discount rate=10%

pension interest cost=72,000$*10%

           i.e 7,200$

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