On January 1, 2021, Medical Transport Company’s accumulated postretirement benefit obligation was $200 million. At the end of 2021, retiree benefits paid were $17 million. Service cost for 2021 is $10 million. Assumptions regarding the trend of future health care costs were revised at the end of 2021, causing the actuary to revise downward the estimate of the APBO by $6 million. The actuary’s discount rate is 8%. Determine the amount of the accumulated postretirement benefit obligation at December 31, 2021.
On January 1, 2021, Medical Transport Company’s accumulated postretirement benefit obligation was $200 million. At the end of 2021, retiree benefits paid were $17 million. Service cost for 2021 is $10 million. Assumptions regarding the trend of future health care costs were revised at the end of 2021, causing the actuary to revise downward the estimate of the APBO by $6 million. The actuary’s discount rate is 8%. Determine the amount of the accumulated postretirement benefit obligation at December 31, 2021.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter19: Accounting For Post Retirement Benefits
Section: Chapter Questions
Problem 11RE
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On January 1, 2021, Medical Transport Company’s accumulated postretirement benefit obligation was $200 million. At the end of 2021, retiree benefits paid were $17 million. Service cost for 2021 is $10 million. Assumptions regarding the trend of future health care costs were revised at the end of 2021, causing the actuary to revise downward the estimate of the APBO by $6 million. The actuary’s discount rate is 8%.
Determine the amount of the accumulated postretirement benefit obligation at December 31, 2021.
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