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The projected benefit obligation was $340 million at the beginning of the year. Service cost for...

The projected benefit obligation was $340 million at the beginning of the year. Service cost for the year was $19 million. At the end of the year, pension benefits paid by the trustee were $15 million and there were no pension-related other comprehensive income accounts requiring amortization. The actuary’s discount rate was 5%.

What was the amount of the projected benefit obligation at year-end?

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Answer #1
Beginning of the year PBO          340
Service cost            19
Interest cost            17 (340*5%)
Loss (gain) on PBO             -  
Less: Retiree benefits           (15)
End of the year PBO          361
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