Concept explainers
1.
Other postretirement benefits: The postretirement benefits which are provided by employers, other than pensions, like medical insurance, life insurance, and legal services, and healthcare benefits, are referred to as other postretirement benefits.
Accumulated benefit obligation (ABO): This is the estimated present value of future retirement benefits, accumulated based on the current compensation levels.
To Draw: The time line that depicts S’s attribution period for retiree benefits and expected retirement period.
2.
To Calculate: The present value of the net benefits as of expected retirement date.
3.
To Calculate: The Company’s expected postretirement benefit obligation at the end of 2018 with respect to S.
4.
To Calculate: The Company’s accumulated postretirement benefit obligation at the end of 2018 with respect to S.
5.
To Calculate: The Company’s accumulated postretirement benefit obligation at the end of 2019 with respect to S.
6.
To Calculate: The service cost to be included in 2019 postretirement benefit expense.
7.
To Calculate: The interest cost to be included in 2019 postretirement benefit expense.
8.
To Show: The changes APBO during 2019 by reconciling the beginning and ending balances.
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Intermediate Accounting
- Q.69. Ben Efit’s employer provides him with the following benefits during the 2022 taxation year: His employer contributed to the company’s registered pension plan on Ben’s behalf: $6,000. Group term life insurance coverage of $100,000; the premium for the coverage is $400. group sickness or accident insurance coverage; the premium paid is $550. A private health services plan with dental coverage; the premium is $800. Mental health counselling: $1,500. Public transit pass; the annual cost is $800. Determine the amount to be included in Ben’s net income for tax purposes for 2022. Show your work!arrow_forwardQ5: Research about and in your own words, describe the different EXCLUSIONS FROM GROSS INCOME: Ø Proceeds of life insurance policyØ Amount received by the insured as a return of premiumØ Gift, bequest, or descentØ Compensation for injuries or sicknessØ Income exempt under treatyØ Retirement benefits, pensions, gratuities, etc.arrow_forwardLO 12.5An employee and employer cost-share pension plan contributions and health insurance premium payments. If the employee covers 35% of the pension plan contribution and 25% of the health insurance premium, what would be the employee’s total benefits responsibility if the total pension contribution was $900, and the health insurance premium was $375? Include the journal entry representing the payroll benefits accumulation for the employer in the month of February.arrow_forward
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