Oregon Company's employees are eligible for retirement with benefits at the end of the year in which both age 60 is attained and they have completed 35 years of service. The benefits provide 15 years' reimbursement for health care services of $31,000 annuaily, beginning one year from the date of retirement Ralph Young was hired at the beginning of 1988 by Oregon after turning age 22 and is expected to retire at the end of 2026 (age 60). The discount rate is 5%. The plan is unfunded. The PV of an ordinary annuity of $1 where n-15 and/-5% is 10.37966. The PV of $1 where n-2 and/-5% is 0.90703 With respect to Ralph, what is Oregon's accumulated postretirement benefit obligation (APBO) at the end of 2024, rounded to the nearest dollar? Multiple Choice $195.334 $291855
Oregon Company's employees are eligible for retirement with benefits at the end of the year in which both age 60 is attained and they have completed 35 years of service. The benefits provide 15 years' reimbursement for health care services of $31,000 annuaily, beginning one year from the date of retirement Ralph Young was hired at the beginning of 1988 by Oregon after turning age 22 and is expected to retire at the end of 2026 (age 60). The discount rate is 5%. The plan is unfunded. The PV of an ordinary annuity of $1 where n-15 and/-5% is 10.37966. The PV of $1 where n-2 and/-5% is 0.90703 With respect to Ralph, what is Oregon's accumulated postretirement benefit obligation (APBO) at the end of 2024, rounded to the nearest dollar? Multiple Choice $195.334 $291855
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Oregon Company's employees are eligible for retirement with benefits at the end of the year in which both age 60 is attained and they have
completed 35 years of service. The benefits provide 15 years' reimbursement for health care services of $31,000 annually, beginning one year from
the date of retirement
Ralph Young was hired at the beginning of 1988 by Oregon after turning age 22 and is expected to retire at the end of 2026 (age 60). The discount
rate is 5%. The plan is unfunded.
The PV of an ordinary annuity of $1 where n-15 and 1=5% is 10.37966.
The PV of $1 where n= 2 and /-5% is 0.90703
With respect to Ralph, what is Oregon's accumulated postretirement benefit obligation (APBO) at the end of 2024, rounded to the nearest dollar?
Mu
O
Choice
$195,334
$291855
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