Reference no: EM132686345

On January 1, 2017, Roca Co. has the following balances:

Projected benefit obligation $3,730,000

Fair value of plan assets 3,340,000

The settlement rate is 10%. Other data related to the pension plan for 2017 are:

Service cost $334,000

Amortization of unrecognized prior service costs 78,000

Contributions 390,000

Benefits paid 150,500

Actual return on plan assets 338,100

Amortization of unrecognized net gain 33,400

Problem 1: The balance of the projected benefit obligation for Roca at December 31, 2017 is

Option 1: $4,286,500.

Option 2: $4,490,500.

Option 3: $4,061,500.

Option 4: $4,038,100.