The Margie Company Has a Defined Benefit Pension Plan for Its

question 38

Multiple Choice

The Margie Company has a defined benefit pension plan for its employees.The following information pertains to the pension plan as of December 31, 2010: $\begin{array}{ll}\text { Projected benefit obligation, January 1, } 2010 & \$ 1,600,000 \\\text { Service cost, } 2010 & 750,000 \\\text { Interest cost, 2010 } & 100,000 \\\text { Payments to retired employees } & 80,000 \\\text { Actual return on plan assets } & 99,600\end{array}$
The amount of the December 31, 2010, pension benefit obligation is

• A)$2, 250, 000
• B)$2, 270, 400
• C)$2, 370, 000
• D)$2, 450, 000

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Definitions:

Catatonic

A behavioral syndrome marked by an inability to move normally, often associated with schizophrenia.

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