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The projected benefit obligation was $280 million at the beginning of the year and $300 million at the end of the year. Service cost for the year was $18 million. At the end of the year, there were no pension-related other comprehensive income accounts. The actuary’s discount rate was 5%. What was the amount of the retiree benefits paid by the trustee?

Respuesta :

abiolataiwo2015

Answer:

$12 million

Explanation:

Calculation to determine the amount of the retiree benefits paid by the trustee

Beg PBO $280 million

Less En PBO ($300 million)

Add Service cost $18 million

Add Interest cost $14 million

(280million*5%)

Retiree benefits Paid by trustee $12 million

Therefore the amount of the retiree benefits paid by the trustee is $12 million

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