The accrued obligation at the beginning of the year was $289,000 and the current service cost for the year is $92,000.Assuming an interest factor of 8%, what is the accrued obligation at the end of the year?

Question

Quizplus · Accepted Answer

To calculate the accrued obligation at the end of the year, you first need to calculate the interest on the beginning obligation, which is $289,000 * 8% = $23,120. Then, add this interest to the beginning obligation and the current service cost: $289,000 + $23,120 + $92,000 = $404,120.

The Accrued Obligation at the Beginning of the Year Was