Acompany's defined benefit pension plan had a pbo of $265,000 on january 1, 2018. during 2018, pension benefits paid were $40,000. the discount rate for the plan for this year was 10%. service cost for 2018 was $80,000. plan assets (fair value) increased during the year by $45,000. the amount of the pbo at december 31, 2018, was:

$331,500

Explanation:

The computation of the ending balance of the pension benefit obligation is shown below:

= Opening balance of PBO + service cost + interest cost - pension benefits

= $265,000 + $80,000 + $26,500 - $40,000

= $331,500

The computation of the interest cost is shown below:

= Opening balance of PBO × discount rate

= $265,000 × 10%

= $26,500

The increased value of the plan assets would be ignored.

answer; ///retained

answer; /// the above statement is (true);