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Basic Question 8 of 15
The Colorado Copper Company sponsors a defined benefit pension plan. The following information pertains to that plan:
Service cost for 2015: $36 million
Retiree benefits paid (end of year): $30 million
Discount rate: 10%
Projected benefit obligation on Jan. 1, 2015: $144 million
Service cost for 2015: $36 million
Retiree benefits paid (end of year): $30 million
Discount rate: 10%
No change in actuarial estimates occurred during 2015. What is CCC's projected benefit obligation on December 31, 2015?
User Contributed Comments 1
| User | Comment |
|---|---|
| quanttrader | projected PBO = initial PBO + svc costs + int costs (initial PBO X rate) - payouts |
I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach
Learning Outcome Statements
explain the financial reporting of defined contribution, defined benefit, and stock-based compensation plans
CFA® 2024 Level I Curriculum, Volume 2, Module 8.