Interest cost will:
A. Increase the PBO and increase pension expense.
B. Increase pension expense and reduce plan assets.
C. Increase the PBO and reduce plan assets.
D. Increase pension expense and reduce the return on plan assets.
Answer:A
Interest cost will:
A. Increase the PBO and increase pension expense. B. Increase pension expense and reduce plan assets. C. Increase the PBO and reduce plan assets. D. Increase pension expense and reduce the return on plan assets.