Question - On January 1 of the current reporting year, Baker Company's projected benefit obligation was $35 million. During the year, pension benefits paid by the trustee were $5 million. Service cost was $12 million. Pension plan assets earned $6 million as expected. At the end of the year, there was no net gain or loss and no prior service cost. The actuary's discount rate was 7.5%.
Required: Determine the amount of the projected benefit obligation at December 31.