A postretirement plan promises health care coverage for all employees who retire after age 62 and complete service of 15 years. As of January 1, 2020, one 50-year old participant has rendered services for 8 years, and is expected to retire at age 65. The following amounts pertain to th participant's benefits. Present value of postretirement benefit cash flow stream at the date of retirement $30,000 Present value of postretirement cash flow stream on Jan. 1, 2020 $4,000 What is the value of the accumulated postretirement benefit obligation (APBO) on January 1, 2020?
A postretirement plan promises health care coverage for all employees who retire after age 62 and complete service of 15 years. As of January 1, 2020, one 50-year old participant has rendered services for 8 years, and is expected to retire at age 65. The following amounts pertain to th participant's benefits. Present value of postretirement benefit cash flow stream at the date of retirement $30,000 Present value of postretirement cash flow stream on Jan. 1, 2020 $4,000 What is the value of the accumulated postretirement benefit obligation (APBO) on January 1, 2020?
Chapter19: Deferred Compensation
Section: Chapter Questions
Problem 35P
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![A postretirement plan promises health care coverage for all employees who retire after age 62 and complete service of 15 years. As of January 1, 2020, one 50-year old participant has rendered services for 8 years, and is expected to retire at age 65. The following amounts pertain to the
participant's benefits.
Present value of postretirement benefit cash flow stream at the date of retirement $30,000
Present value of postretirement cash flow stream on Jan. 1, 2020
$4,000
What is the value of the accumulated postretirement benefit obligation (APBO) on January 1, 2020?
Select one:
O
O
O
a. $2,133
b. $1,391
c. $1,600
d. $12,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fffc3e853-c902-47a8-a809-482f4e6e7925%2F4340260e-4c15-4d19-a01e-15abb444bec0%2F8alpdpp_processed.png&w=3840&q=75)
Transcribed Image Text:A postretirement plan promises health care coverage for all employees who retire after age 62 and complete service of 15 years. As of January 1, 2020, one 50-year old participant has rendered services for 8 years, and is expected to retire at age 65. The following amounts pertain to the
participant's benefits.
Present value of postretirement benefit cash flow stream at the date of retirement $30,000
Present value of postretirement cash flow stream on Jan. 1, 2020
$4,000
What is the value of the accumulated postretirement benefit obligation (APBO) on January 1, 2020?
Select one:
O
O
O
a. $2,133
b. $1,391
c. $1,600
d. $12,000
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