I don’t understand how interest cost is derived here. Since the company is under GAAP the Interest income would be 6% * Bgn FV Assets = 250.5 and interest expense would be 5% *4085 = 204.25. So we actually have a net interest income of 45. How do they derive 60
Also in the solution, they calculated TPPC via the balance sheet method (End funded assets - bgn funded assets - contributions ). How do I know which TPPC formula to use since I am not getting the same answer under the B/S method and I/S method?