The EPBO for a Particular Employee on January 1, 2013

question 18

Multiple Choice

The EPBO for a particular employee on January 1, 2013, 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, 2013. What is the APBO at December 31, 2013?

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

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