What is the accumulated postretirement benefit obligation

Reference no: EM132761011

Question - Chase Corporation, has an unfunded retiree health care plan. The actuary estimates the net cost of providing health care benefits to a particular employee during his retirement years to have a present value of $24,000 as of the end of 2021 (the EPBO). The benefits, and therefore the expected postretirement benefit obligation, relate to an estimated 36 years of service, and 12 of those years have been completed. The interest rate is 6%. Pertaining to the one employee only:

1) What is the accumulated postretirement benefit obligation at the end of 2022?

A. 10,180

B. 11,184

C. 9,187

D. 12,220

2) What is the interest cost to be included in 2022 postretirement benefit expense?

A. 500

B. 475

C. 480

D. 525

3) What is the 2022 postretirement benefit expense, assuming no net gains or losses and no prior service cost?

A. 9,187

B. 2,187

C. 1,187

D. 8,187

Reference no: EM132761011

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