The EPBO for a Particular Employee on January 1, 2018

The EPBO for a particular employee on January 1, 2018, was $150,000. The APBO at the beginning of the year was $30,000. 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) $37,800.
B) $42,800.
C) $31,500.
D) $30,000.