The actuaries for Interconnect Cable Company provided its accountants with the following information (in thousands of $)

Question:

The actuaries for Interconnect Cable Company provided its accountants with the following information (in thousands of $) related to the company's pension plan:
December 31, 2012:
Increase in PBO arising from plan's amendment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $684
January 1, 2013:
PBO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,700
Fair value of the pension fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,860
Market-related value of the pension fund (5-year weighted average) . . . . . . . . . . . . $1,600
Obligation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10%
Average service life for amortization of deferred gain and prior service costs . . . . 14 years
Deferred pension gain-prior year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $70
Expected rate of return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9%
For year 2013:
Benefit payments to retirees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $173
Contributions to pension plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 290
December 31, 2013:
PBO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,917
Fair value of pension plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,137
Instructions:
Based on the data provided, prepare a pension work sheet for Interconnect Cable Company for 2013. The 5-year weighted-average value of plan assets is used in computing the expected return.
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...