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Question
The Shasti Corporation reported the following for the year ending December 31, 2011:
Service cost: $142,610
Plan assets, January 1, 2011: $1,200,000
Prior service cost amortization: $21,150
Expected return on plan assets: 9%
Actual return on plan assets: 8.5%
Pension expense: $175,760
Actuarially determined discount rate: 8%
What was the projected benefit obligation on January 1, 2011?
A. $1,500,000
B. $1,425,000
C. $1,200,000
D. $1,333,333
Answer
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