The EPBO for a Particular Employee on January 1,2016,was $30,000

question 128

Multiple Choice

The EPBO for a particular employee on January 1,2016,was $30,000.The APBO at the beginning of the year was $6,000.The appropriate discount rate for this postretirement plan is 5%.The employee is expected to serve the company for a total of 25 years with 5 of those years already served as of January 1,2016.What is the APBO at December 31,2016?

• A)$6,300.
• B)$7,200.
• C)$7,500.
• D)$7,560.

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Definitions:

Short-Run Supply

The total quantity of goods and services that producers are willing and able to sell at current prices in a short-term period, often influenced by fixed production capacities.

Long-Run Supply

The total amount of a product or service that is available to the market from all producers over a long period, when all inputs can be adjusted.

Purely Competitive

An idealized market structure in which there are many buyers and sellers, no barriers to entry or exit, and perfect information, leading to prices being determined by supply and demand.

Market Supply Curve

A graphical representation showing the total quantity of a good that sellers are willing and able to sell at various prices, holding all else constant.