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computation of pension service cost pension plan information for naperville window c 692797

Computation of Pension Service Cost

Pension plan information for Naperville Window Company is as follows:

January 1, 2008

PBO                                            

$4,780,000

 

ABO                                            

$3,950,000

During 2008

Pension benefits paid to retired employees                 

$315,000

December 31, 2008

PBO                                             

$5,425,000

 

ABO                                            

$4,245,000

Discount (settlement) rate

                                               

10%

Assuming no change in actuarial assumptions, what is the pension service cost for 2008?

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