Triblock Industries has a defined benefit pension plan. Using a discount rate of 6%, the actuary estimated the companys projected benefit obligation (PBO) to be $278,343 and $309,796 at the beginning and end of the current year, respectively. The pension plan has not been amended and there were no revisions to the estimates used to derive the PBO. What portion of the current years increase in the PBO is attributable to service (that is, the service cost component of pension cost) during the current year?

Required Informatlon The accumulated benefit obligation is an estimate of the discounted present value of the retirement benefits earned so far by employees, applying the plan's penslon formula to existing compensation levels. The vested benefit obligation is the portion of the accumulated benefit obligation that plan particlpants are entitled to recelve regardless of thelr continued employment. The projected benefit obligation estimates retirement benefits by applylng the pension formula to projected future compensation levels points Measu ring the Pension Obligation Accumulated Benefit Obligation (ABO) The actuary's estimate of the total retirement benefits (at their discounted present value) earned so far by employees, applying the pension formula using existing compensation levels. Pension Knowledge Check 01 Triblock Industries has a defined benefit pension plan. Using a discount rate of 6%, the actuary estimated the company's projected benefit obligation (PBO) to be $278,343 and $309,796 at the beginning and end of the current year, respectively. The pension plan has not been amended and there were no revisions to the estimates used to derlve the PBO. What portion of the current year's Increase In the PBO Is attributable to service (that is, the service cost component of pension cost) during the current year? Answer is complete but not entirely correct. e cost 14,753