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The following information pertains to Hopson Co.'s pension plan: Projected benefit obligation at 1/1/21 $95,000 Assumed...

The following information pertains to Hopson Co.'s pension plan: Projected benefit obligation at 1/1/21 $95,000 Assumed settlement rate 6% Service costs for 2021 $24,000 Benefits paid during 2021 $27,500 If no change in actuarial estimates occurred during 2021, Hopson's projected benefit obligation at December 31, 2021 was

A. $99,100. B. $98,700. C. $113,200. D. $97,200.

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Answer #1
Projected benefit obligation at 1/1/21          95,000
Service Cost          24,000
Discount Factor(95,000 x 6%)            5,700
Less: Benefit Paid        -27,500
Projected benefit Obligation Dec 31, 2021          97,200

Answer: D. $97,200.

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