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Question - Castillo Company has a defined benefit pension plan. At the end of the reporting year, the following data were available: beginning PBO, $83,000; service cost, $18,800; interest cost, $5,800; benefits paid for the year, $9,800; ending PBO, $97,800; the expected return on plan assets, $10,800; and cash deposited with pension trustee, $17,500. There were no other pension-related costs. Make the journal entry to record the annual pension costs will include a credit to the PBO?
a. $18,800.
b. $13,800.
c. $17,500.
d. $24,600.
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