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A company's postretirement health care benefit plan had an APBO of $220,000 on January 1, 2021. During 2021, retiree benefits paid were $35,500. The discount rate for the plan for this year was 10%. Service cost for 2021 was $75,500. Plan assets (fair value) increased during the year by $37,800. The amount of the APBO at December 31, 2021, was:

Respuesta :

Tundexi

Answer:

$282,000

Explanation:

APBO means Accumulated post retirement benefit obligation

Computation of amount of the APBO at December 31, 2021

APBO at the beginning  $220,000

Add: Service cost            $75,500

Add: Interest cost            $22,000 (220,000*10%)

Less: Benefit paid            $35,500

APBO at December 31    $282,000

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