On January 1, 2011, Crowther Co. estimated a projected benefit of $440,000 based on a settlement rate of 12 percent. Pension benefits paid to retirees totaled $60,000. Service costs for 2011 amounted to $148,000. The fair value of the plan assets were $350,000 and $400,000 on December 31, 2010, and December 31, 2011, respectively. The projected benefit obligation at December 31, 2011, was

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The projected benefit obligation at December 31, 2011, is $580,800. This is calculated as follows:Projected benefit obligation at December 31, 2010: $440,000Service cost for 2011: $148,000Interest on projected benefit obligation for 2011: $440,000 x 12% = $52,800Benefits paid to retirees in 2011: $60,000Projected benefit obligation at December 31, 2011: $440,000 + $148,000 + $52,800 - $60,000 = $580,800