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Lawrence Company Has a Defined Benefit Pension Plan

Question 84

Multiple Choice

Lawrence Company has a defined benefit pension plan.On December 31 of the current year (the end of the fiscal year) ,the actuary's report to the company contained the following information: Ending PBO,$115,000; benefits paid to retirees,$15,000; interest cost,$9,000.The discount rate applied be the actuary was 9%.What was service cost for the year?


A) $6,000
B) $21,000
C) $24,000
D) $30,000

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