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The EPBO for a particular employee on January 1, 2016, was $150,000. The APBO at the beginning of the year was $30,000. The appropriate discount
The EPBO for a particular employee on January 1, 2016, 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, 2016. The service cost and interest cost for 2016 are respectively:
C. $6,000 and $1,500 | |
A. $300 and $7,500 | |
D. $36,000 and $7,500 | |
B. $6,300 and $1,500 | |
E. None of the other answer choices are correct |
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