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 th participant's 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?
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 th participant's 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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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