1. 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 participants 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?

2. Pension expense is classified in a multiple-step income statement as follows:

Select one:

a. Pension expense is classified as operating expenses.

b. Pension expense is classified as other expenses.

c. The portion of pension expense related to service cost is included in operating expenses and the remainder is included in other expenses.

d. The portion of pension expense related to service cost is included in other expenses and the remainder is included in operating expenses.