INTERMEDIATE ACCOUNTING(LL)-W/2 ACCESS
9th Edition
ISBN: 9781260180657
Author: SPICELAND
Publisher: MCG
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Question
Chapter 17, Problem 17.18P
1.
To determine
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 determine
To Calculate: The present value of the net benefits as of expected retirement date.
3.
To determine
To Calculate: The Company’s expected postretirement benefit obligation at the end of 2018 with respect to S.
4.
To determine
To Calculate: The Company’s accumulated postretirement benefit obligation at the end of 2018 with respect to S.
5.
To determine
To Calculate: The Company’s accumulated postretirement benefit obligation at the end of 2019 with respect to S.
6.
To determine
To Calculate: The service cost to be included in 2019 postretirement benefit expense.
7.
To determine
To Calculate: The interest cost to be included in 2019 postretirement benefit expense.
8.
To determine
To Show: The changes APBO during 2019 by reconciling the beginning and ending balances.
Expert Solution & Answer
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Students have asked these similar questions
Exercise 17-25 (Algo) Postretirement benefits; determine APBO, service cost, interest cost; prepare
journal entry [LO17-10, 17-11]
The following data are available pertaining to Household Appliance Company's retiree health care plan for 2024:
Number of employees covered
Years employed as of January 1, 2024
Attribution period
2
2 [each]
25 years
Expected postretirement benefit obligation, January 1
Expected postretirement benefit obligation, December 31
Interest rate
Funding
Required:
1. What is the accumulated postretirement benefit obligation at the beginning of 2024?
$ 56,000
$ 58,800
5%
none
Question 11
The following data are for the pension plan for the employees of Cullumber Company.
1/1/20
12/31/20
12/31/21
Accumulated benefit obligation
$
5400000
$
5410000
$
6850000
Projected benefit obligation
5560000
5770000
7530000
Plan assets (at fair value)
4600000
6230000
6780000
AOCL – net loss
0
975000
1000000
Settlement rate (for year)
9%
10%
Expected rate of return (for year)
9%
8%
Cullumber’s contribution was $861000 in 2021 and benefits paid were $751000. Cullumber estimates that the average remaining service life is 15 years.The actual return on plan assets in 2021 was
$550000.
$360000.
$440000.
$430000.
3
The following data are available pertaining to Firewall Corporation's retiree health plan for 2021:
Number of employees covered
Years employed as of January 1, 2021
Attribution period
EPBO, January 1
EPBQ, December 31
Interest rate
Funding
4
5 (each)
20 years
$112,000
$123,200
10%
none
Required:
1. What is the APBO at the beginning of 2021?
2. What is the interest cost for 2021?
3. What is service cost for 2021?
4. Prepare the journal entry to record the postretirement benefit expense for 2021.
Complete this question by entering your answers in the tabs below.
Req 1 to 3
Req 4
What is the APBO at the beginning, interest cost and service cost for 2021?
1. APBO
2. Interest cost
3. Service cost
Req 1 to 3
Req 4
>
Chapter 17 Solutions
INTERMEDIATE ACCOUNTING(LL)-W/2 ACCESS
Ch. 17 - Prob. 17.1QCh. 17 - Prob. 17.2QCh. 17 - Prob. 17.3QCh. 17 - What is the vested benefit obligation?Ch. 17 - Prob. 17.5QCh. 17 - Prob. 17.6QCh. 17 - Name three events that might change the balance of...Ch. 17 - Prob. 17.8QCh. 17 - Prob. 17.9QCh. 17 - Prob. 17.10Q
Ch. 17 - The return on plan assets is the increase in plan...Ch. 17 - Define prior service cost. How is it reported in...Ch. 17 - Prob. 17.13QCh. 17 - Is a companys PBO reported in the balance sheet?...Ch. 17 - What two components of pension expense may be...Ch. 17 - Prob. 17.16QCh. 17 - Evaluate this statement: The excess of the actual...Ch. 17 - Prob. 17.18QCh. 17 - TFC Inc. revises its estimate of future salary...Ch. 17 - Prob. 17.20QCh. 17 - Prob. 17.21QCh. 17 - Prob. 17.22QCh. 17 - The components of postretirement benefit expense...Ch. 17 - The EPBO for Branch Industries at the end of 2018...Ch. 17 - Prob. 17.25QCh. 17 - Prob. 17.26QCh. 17 - Prob. 17.1BECh. 17 - Prob. 17.2BECh. 17 - Prob. 17.3BECh. 17 - Prob. 17.4BECh. 17 - Prob. 17.5BECh. 17 - Prob. 17.6BECh. 17 - Prob. 17.7BECh. 17 - Prob. 17.8BECh. 17 - Prob. 17.9BECh. 17 - Prob. 17.10BECh. 17 - Net gain LO176 The projected benefit obligation...Ch. 17 - Prob. 17.12BECh. 17 - Prob. 17.13BECh. 17 - Postretirement benefits; determine the APBO and...Ch. 17 - Prob. 17.15BECh. 17 - Prob. 17.1ECh. 17 - Prob. 17.2ECh. 17 - Prob. 17.3ECh. 17 - Prob. 17.4ECh. 17 - Prob. 17.5ECh. 17 - Prob. 17.6ECh. 17 - Prob. 17.7ECh. 17 - Prob. 17.8ECh. 17 - Prob. 17.9ECh. 17 - Prob. 17.10ECh. 17 - Prob. 17.11ECh. 17 - PBO calculations; ABO calculations; present value...Ch. 17 - Prob. 17.13ECh. 17 - Prob. 17.14ECh. 17 - Prob. 17.15ECh. 17 - Prob. 17.16ECh. 17 - Prob. 17.17ECh. 17 - Prob. 17.18ECh. 17 - Prob. 17.19ECh. 17 - Prob. 17.20ECh. 17 - Prob. 17.21ECh. 17 - Prob. 17.22ECh. 17 - Prob. 17.23ECh. 17 - Prob. 17.24ECh. 17 - Prob. 17.25ECh. 17 - Prob. 17.26ECh. 17 - Prob. 17.27ECh. 17 - Prob. 17.28ECh. 17 - Prob. 17.29ECh. 17 - Prob. 17.30ECh. 17 - Prob. 17.31ECh. 17 - Prob. 17.32ECh. 17 - Prob. 17.33ECh. 17 - Prob. 17.1PCh. 17 - PBO calculations; present value concepts LO173...Ch. 17 - Service cost, interest, and PBO calculations;...Ch. 17 - Prob. 17.4PCh. 17 - Prob. 17.5PCh. 17 - Prob. 17.6PCh. 17 - Determining the amortization of net gain LO176...Ch. 17 - Prob. 17.8PCh. 17 - Prob. 17.9PCh. 17 - Prob. 17.10PCh. 17 - Prob. 17.11PCh. 17 - Prob. 17.12PCh. 17 - Prob. 17.13PCh. 17 - Prob. 17.14PCh. 17 - Prob. 17.15PCh. 17 - Prob. 17.16PCh. 17 - Prob. 17.17PCh. 17 - Prob. 17.18PCh. 17 - Prob. 17.19PCh. 17 - Prob. 17.20PCh. 17 - Prob. 17.21PCh. 17 - Prob. 17.1BYPCh. 17 - Prob. 17.2BYPCh. 17 - Prob. 17.3BYPCh. 17 - Prob. 17.5BYPCh. 17 - Prob. 17.6BYPCh. 17 - Prob. 17.7BYPCh. 17 - Prob. 17.8BYPCh. 17 - Prob. 17.9BYPCh. 17 - Prob. 17.11BYPCh. 17 - Prob. 1CCTCCh. 17 - Prob. 1CCIFRS
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