The accrued benefit obligation of $169,969 is based on plan assets of $525,000 and plan liabilities of $694,969.

The accrued benefit obligation of $169,969 is based on plan assets of $525,000 and plan liabilities of $694,969. No entries have been made to reflect changes in the plan asset and liability for the current year. A review of an actuary's report reveals that the discount rate for the defined benefit obligation is 7%, while the expected and actual return on the plan assets is 10%. Service costs for the current year are $35,000, and the benefits paid to retirees were $40,000