(solution) A company's postretirement health care benefit plan had an APBO

(solution) A company's postretirement health care benefit plan had an APBO

A company’s postretirement health care benefit plan had an APBO of $285,000 on January 1, 2016. During 2016, retiree benefits paid were $42,000. The discount rate for the plan for this year was 10%. Service cost for 2016 was $84,000. Plan assets (fair value) increased during the year by $355,500. The amount of the APBO at December 31, 2016, was:

   

$397,500 $327,000 $355,500 $243,000