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On January 1, 2018, Burleson Corporation’s projected benefit obligation was $36 million. During 2018 pension benefits...

On January 1, 2018, Burleson Corporation’s projected benefit obligation was $36 million. During 2018 pension benefits paid by the trustee were $8 million. Service cost for 2018 is $16 million. Pension plan assets (at fair value) increased during 2018 by $10 million as expected. At the end of 2018, there was no prior service cost and a negligible balance in net loss–AOCI. The actuary’s discount rate was 10%. Required: Determine the amount of the projected benefit obligation at December 31, 2018.

Beginning of 2018 ?
? ?
? ?
? ?
? ?
End of 2018 ?
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Answer #1

the following is the determination of projected benefit obligation:

beginning of 2018 36
service cost 16
interest cost ($36 m *10%) 3.60
loss (gain ) on projected benefit obligation nil
less:retiree benefits (8)
end of 2018

47.60
3 1
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