Answer:
The APBO at December 31, 2021 is $37,800.
Explanation:
In order to calculate the ABPO at December 31, 2021 we have to use the following formula:
ABPO= EBPO as on December 31, 2021 × ratio period served over aquired
= ($150,000 × 1.05) × <u>6 years</u>
25 years
= $157,500× <u>6 years</u>
25 years
= $37,800.
The APBO at December 31, 2021 is $37,800.