Timu joined the firm 12 years ago and is 42 today.The firm has a post-retirement health care plan with the following coverages for retirees: 
Timu is expected to retire at age 63.The present value today of 100% post-retirement health care coverage for Timu is $20,000,considering life expectancy and other factors.The present value of 75% coverage is $14,000.What is the accumulated post-retirement benefit obligation for Timu today?
A) $20,000
B) $14,000
C) $8,000
D) $5,600
Correct Answer:
Verified
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