Generic Company Sponsors an Unfunded Postretirement Plan Providing Healthcare Benefits

Generic Company sponsors an unfunded postretirement plan providing healthcare benefits. The following information relates to the current year's activity of Generic's postretirement benefit plan: $$\begin{array} { l c } \text { Postretirenent benefit expense } & 150 \text { mullion } \\\text { Service cost } & 120 \text { million } \\\text { Amortization of net gain-AOCI } & 10 \text { millior } \\\text { Prior service cost-AOCI } & \text { none } \\\text { Retiree benefits paid (end of year) } & 30 \text { milliory }\end{array}$$ The interest cost for the year is:

A) $20 million
B) $40 million
C) $30 million
D) $50 million

Correct Answer:

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