Computation of Pension Service Cost
Pension plan information for Naperville Window Company is as follows:
January 1, 2008 |
PBO |
$4,780,000 |
|
ABO |
$3,950,000 |
During 2008 |
Pension benefits paid to retired employees |
$315,000 |
December 31, 2008 |
PBO |
$5,425,000 |
|
ABO |
$4,245,000 |
Discount (settlement) rate |
|
10% |
Assuming no change in actuarial assumptions, what is the pension service cost for 2008?