On January 1 of the current reporting year, Coda Company\'s projected benefit ob

Question

On January 1 of the current reporting year, Coda Company's projected benefit obligation was $29.5 million. During the year, pension benefits paid by the trustee were $3.5 million. Service cost was $9.5 million. Pension plan assets earned $4.5 million as expected. At the end of the year, there was no net gain or loss and no prior service cost. The actuary's discount rate was 10%.

Required:
Determine the amount of the projected benefit obligation at December 31. (Enter your answers in millions rounded to 2 decimal places. Amounts to be deducted should be indicated with a minus sign.)

Explanation / Answer

(in millions) Beginning PBO $29.5 Service cost $9.5 Interest cost (10% x $29.5) $2.95 Loss (gain) on PBO $0 Less benefits paid -$3.5 Ending PBO $38.45

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