The EPBO for a Particular Employee on January 1, 2009

question 26

Multiple Choice

The EPBO for a particular employee on January 1, 2009, was $150,000. The APBO at the beginning of the year was $30,000. The appropriate discount rate for this postretirement plan is 5%. The employee is expected to serve the company for a total of twenty-five years with five of those years already served as of January 1, 2009. What is the APBO at December 31, 2009?

• A)$37,800.
• B)$42,800.
• C)$31,500.
• D)$30,000.($150,000 1.05) 6/25 = $37,800

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Definitions:

Different Departments

Units or divisions within an organization, each responsible for specific areas of operation or tasks.

Virtual Teams

Groups of people who work together from different geographical locations, connected by electronic communication technologies.

Trust

The firm belief in the reliability, truth, ability, or strength of someone or something.

Cross-functional Teams

Teams composed of members from different departments within an organization, working together to achieve a common goal.