Pension plan information for Naperville Window Company is as follows: January 1, 2013 PBO. . . .

Question:

Pension plan information for Naperville Window Company is as follows:
January 1, 2013
PBO. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,780,000
ABO. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,950,000
During 2013
Pension benefits paid to retired employees . . . . . . . . . . . . . . . $315,000
December 31, 2013
PBO. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5,425,000
ABO. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,245,000
Obligation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10%
Assuming no change in actuarial assumptions, what is the pension service cost for 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...