Louie Company has a defined benefit pension plan. On December 31 (the end of the...
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Accounting
Louie Company has a defined benefit pension plan. On December 31 (the end of the fiscal year), the company received the PBO report from the actuary. The following information was included in the report: ending PBO, $114,000; benefits paid to retirees, $11,500; interest cost, $8000. The discount rate applied by the actuary was 10%. What was the service cost for the year?
A) $19,500.
B) $37,500.
C) $3500.
D) $94,500.
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