The EPBO for a Particular Employee on January 1, 2018

Multiple Choice

The EPBO for a particular employee on January 1, 2018, was $30,000. The APBO at the beginning of the year was $6,000. The appropriate discount rate for this postretirement plan is 5%. The employee is expected to serve the company for a total of 25 years with 5 of those years already served as of January 1, 2018. What is the APBO at December 31, 2018?

A) $6,300.
B) $7,200.
C) $7,500.
D) $7,560.