Question: On January 1 2011 Medical Transport Company s accumulated post
On January 1, 2011, Medical Transport Company's accumulated postretirement benefit obligation was $25 million. At the end of 2011, retiree benefits paid were $3 million. Service cost for 2011 is $7 million. Assumptions regarding the trend of future health care costs were revised at the end of 2011, causing the actuary to revise downward the estimate of the APBO by $1 million. The actuary's discount rate is 8%. Determine the amount of the accumulated postretirement benefit obligation at December 31, 2011.
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