Acompany's defined benefit pension plan had a pension benefit obligation (pbo) of $265,000 on 1/1/2018. 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 pbo at december 31, 2018 was what?

The pension benefit obligation will be $331500

Explanation:

We have given PBO = $265000

Less pension benefits paid = $40000

Discount rate = 10% = 0.01

Service cost = $80000

Interest cost = $265000×0.01= $26500

We have to find the amount  of PBO

So the pension benefit obligation PBO will be  = $265000+$80000+$26500-$40000 = $331500

So the pension benefit obligation will be $331500

answer; i believe the correct answer is (4.0);