The EPBO for a Particular Employee on January 1, 2018

question 196

Multiple Choice

The EPBO for a particular employee on January 1, 2018, 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 25 years with 5 of those years already served as of January 1, 2018. What is the APBO at December 31, 2018?

• A) $37,800.
• B) $42,800.
• C) $31,500.
• D) $30,000.

---

Definitions:

Epidermis

The outermost layer of the skin, serving as a protective barrier against environmental hazards.

Lamellated Corpuscle

A nerve ending found in the skin and other tissues that is sensitive to pressure and vibration, also known as a Pacinian corpuscle.

Arrector Pili Muscle

A small muscle attached to hair follicles in mammals, responsible for causing hairs to stand up when the organism is cold or frightened.

Apocrine Sweat Gland

A type of gland associated with hair follicles, found in areas like the armpits and groin, secreting sweat that contains fatty materials.