The following information pertains to the Moonlight Company pension plan:Employer contribution $2,800Project benefit obligation at 1/1 $72,000Assumed discount rate 10%Service cost for the year 18,000Pension benefits paid during the year 35,000If no change in actuarial estimates occurred during the year, Moonlight's projected benefit obligation at December 31 of the current year was:a. $62,200b. $65,000c. $79,200d. $82,200e. $59,400

$62,200

Explanation:

Moonlight's projected benefit obligation can be calculated by deducting the Pension benefits paid by the sum of the estimate of projected benefit obligation and Service Cost and Discount Factor.

the estimate of projected benefit obligation       = $72,000

Discount Factor ( 10% of  72,000  )                       = $7,200

Service cost                                                            = $18,000

Total                                                                        = $97,200

Benefit paid                                                            = ( 35,000)

Projected benefit Obligation Dec 31                  = $62,200