On January 1, 2013, Burleson Corporations projected benefit obligation was $30 million. During 2013 pension benefits paid

Question:

On January 1, 2013, Burleson Corporation’s projected benefit obligation was $30 million. During 2013 pension benefits paid by the trustee were $4 million. Service cost for 2013 is $12 million. Pension plan assets (at fair value) increased during 2013 by $6 million as expected. At the end of 2013, 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, 2013.\

Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...