Solution-Calculate postretirement benefit expense for

Calculate postretirement benefit expense for current year

Assignment Help Financial Accounting

Reference no: EM133057257

Question - Lender Company provides postretirement health care benefits to employees who provide at least 10 years of service and reach the age of 65 while in service. On January 1 of the current calendar year, the following plan-related data were available.

APBO balance	$152,000,000
Fair value of plan assets	none
Average remaining service period to retirement	25 years
Average remaining service period to full eligibility	20 years

On January 1 of the current year, Lender amends the plan to provide dental benefits. The actuary determines that the cost of making the amendment increases the APBO by $22,000,000. Management chooses to amortize this amount on a straight-line basis. The service cost is $42,000,000. The appropriate interest rate is 10%.

Required - Calculate the postretirement benefit expense for the current year.

Reference no: EM133057257

Questions Cloud

Herzberg tow-factor theory : Herzberg's two-factor theory speaks to issues relevant in both employee compensation and benefits as it discusses why people choose a workplace,

Human resources plan : Based on information learned in this course, create a Human Resources plan of the steps needed to create a one-person HR department.

Data sources-institutional review board : Research and discuss data sources available for the proposed projects including Institutional Review Board (IRB) approval, if needed.

What is the financial advantage of making starters : What is the financial advantage (disadvantage) of making the 74,000 starters instead of buying them from an outside supplier

Calculate postretirement benefit expense for current year : The actuary determines that the cost of making the amendment increases the APBO by $22,000,000. Calculate postretirement benefit expense for current year

Compute the covariance of two securities : Stock A is expected to return 12 percent in a normal economy and lose 7 percent in a recession. Stock B is expected to return 8 percent in a normal economy and

Compute the cash cycle given a 365-day a year : Gonzalez Mercantile has an inventory turnover of 8.3, days' sales in receivables of 57, and an average payables turnover of 7.2 Compute the cash cycle given a 3

Determine the value of the contract : A forward contract is available on a 10 year RSA bond. The bond has par value of R100 and pays a R5 semi-annual coupon (30 June and 31 December). As at 1 July 2

Contrast bank rates versus bmw dealership financing : Compare and contrast bank rates versus BMW dealership financing. A table showing the options would be helpful here. Cite your references.

User Account

All Pages

Calculate postretirement benefit expense for current year

Reference no: EM133057257

Reference no: EM133057257

Questions Cloud

Reviews

Write a Review

Financial Accounting Questions & Answers

Financial statement analysis and preparation

Shareholder of a company

Financial and accounting principles

Prepare a statement of cash flow using the direct method

Financial accounting assignment

Prepare general journal entries for goela

Principles of financial accounting

Prepare general journal entries to record the transactions

Global reporting initiative

Explain the iasb conceptual frameworks

Determine the company''s financial statements

Computation of free cash flow

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT