During 2016, Abbott Laboratories decreased its discount rate used to calculate pension obligation from 4.3% to 3.8%. The effect on the company's pension expense for the year and pension obligation balance at year end is:

Question

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Decreasing the discount rate increases the present value of future pension obligations, thus increasing the pension obligation. It also increases the pension expense because the company must recognize a higher expense now to meet the increased future obligations.

During 2016, Abbott Laboratories Decreased Its Discount Rate Used to Calculate