What is the interest cost to be included in the current year's postretirement benefit expense?

Question

Quizplus · Accepted Answer

The interest cost to be included in the current year's postretirement benefit expense is calculated as the beginning balance of the accumulated postretirement benefit obligation (APBO) multiplied by the discount rate. In this case, the beginning balance of the APBO is $60,000 and the discount rate is 6%, resulting in an interest cost of $720. Therefore, option B is the correct answer.

What Is the Interest Cost to Be Included in the Current