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Crystal Company has an unfunded retiree health care plan. Each of the company's employees has been with the organization since its inception two years ago,
- Crystal Company has an unfunded retiree health care plan. Each of the company's employees has been with the organization since its inception two years ago, the beginning of year one. As of the end of the year two, the actuary estimates the total net cost of providing benefits to employees during their retirement years to have a present value of $203,000. Each of the employees will become fully eligible for benefits after another 28 years of service but aren't expected to retire for 35 years The interest rate is 10%. What is the accumulated postretirement benefit obligation at the end of year two?
- $203,000
- $13,533
- $6,767
- None of the above
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