Discount rate used to calculate pension obligation

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Reference no: EM13803968

During 2011, Abbott Laboratories decreased its discount rate used to calculate pension obligation from 5.4% to 5.0%. The effect on the company’s pension expense for the year and pension obligation balance at year end is:

A) Increase pension expense, decrease pension obligation

B) Decrease pension expense, decrease pension obligation

C) Decrease pension expense, increase pension obligation

D) Increase pension expense, increase pension obligation

E) No effect on pension expense, decrease pension obligation

Reference no: EM13803968

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