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Calculate the interest cost

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Reference no: EM132465453

Problem - The following information relates to the pension plan for the employees of Oriole Co.:

 

1/1/17

12/31/17

12/31/18

Accum. benefit obligation

$8340000

$8760000

$11700000

Projected benefit obligation

8865000

9558000

13107000

 

Fair value of plan assets

8025000

10020000

11154000

AOCI - net (gain) or loss

-0-

(1422000)

(1590000)

Settlement rate (for year)

 

9%

9%

 

Expected rate of return (for year)

 

9%

8%

Oriole estimates that the average remaining service life is 16 years. Oriole's contribution was $1233000 in 2018 and benefits paid were $897000.

Required - Calculate the interest cost for 2018?

$788400.

$1179630.

$860220.

$797850.

Reference no: EM132465453

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