The following information pertains to Seda Co.’s pension plan:

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Actuarial estimate of projected benefit obligation at 1/1/06

$72,000

Assumed discount rate

10

%

Service costs for 2006

18,000

Pension benefits paid during 2006

15,000

If no change in actuarial estimates occurred during 2006, Seda’s projected benefit obligation at December 31, 2006 was

  1. $64,200
  2. $75,000
  3. $79,200
  4. $82,200