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Question
The Shelast Corporation adopted a defined benefit pension plan on January 1, 2011 and has provided the following information:
The projected benefit obligation on January 1, 2011 was $2,160,500.
The 2011 service cost totaled $250,000; the 2012 service cost totaled $275,000.
Annual amortization of prior service costs is $216,050.
The settlement/discount rate is 10%.
The pension plan funding during 2011 was $200,000; the pension plan funding during 2012 was $225,000.
The actual return on plan assets was $19,000 during 2012.
What is the projected benefit obligation balance as of December 31, 2012?
Answer
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