Sandra Company provided the following information for the current year:

Current service cost 500,000

Interest expense on PBO 600,000

Interest income on plan assets 350,000

Loss on plan settlement before normal retirement date 250,000

Present value of benefit obligation settled in advance 950,000

Past service cost during the year 300,000

Actual return on plan assets 850,000

Actuarial loss on PBO during the year 200,000

Contribution to the plan 1,500,000

Benefits paid to retirees 1,000,000

Discount rate 10%

 

What amount should be reported as accrued benefit cost at year-end?

a. 2,000,000

b. 1,500,000

c. 1,750,000

d. 500,000

Answer rating: 100% (QA)

Projected Benefit ObligationPBO is the measurement of pension liability in ... View the full answer