Louie company has a defined benefit pension plan. on december 31 (the end of the fiscal year), the company received the pbo report from the actuary. the following information was included in the report: ending pbo, $110,000; benefits paid to retirees, $10,000; interest cost, $8,000. the discount rate applied by the actuary was 8%. what was the service cost for the year?

a. $2,00
b.$12,00
c. $18,00
d. $92,000

Powell company began the 2018 accounting period with $40,000 cash, $86,000 inventory, $60,000 common stock, and $66,000 retained earnings. during 2018, powell experienced the following events: sold merchandise costing $58,000 for $99,500 on account to prentise furniture store. delivered the goods to prentise under terms fob destination. freight costs were $900 cash. received returned goods from prentise. the goods cost powell $4,000 and were sold to prentise for $5,900. granted prentise a $3,000 allowance for damaged goods that prentise agreed to keep. collected partial payment of $81,000 cash from accounts receivable. required record the events in a statements model shown below. prepare an income statement, a balance sheet, and a statement of cash flows. why would prentise agree to keep the damaged goods?