User Account

All Pages

Calculate the postretirement benefit expense

Assignment Help Accounting Basics
Reference no: EM131731104

Question - Bridgewater Company provides postretirement health care benefits to employees who provide at least 15 years of service and reach the age of 65 while in service. On December 31, 2014, the following plan-related data was available.

APBO balance - $20,000,000

Fair value of plan assets - none

Average remaining service period to retirement - 20 years

Average remaining service period to full eligibility - 10 years

On January 1, 2015, Bridgewater amends the plan to provide dental benefits. The actuary determines that the cost of making the amendment retroactive increases the APBO by $4,000,000. Management of the company chooses to amortize this amount on a straight-line basis. The service cost is $3,500,000. The appropriate interest rate is 8%. Calculate the postretirement benefit expense for 2015.

Reference no: EM131731104

Questions Cloud

Concepts of multiple intelligence and emotional intelligence : Discuss the concepts of Multiple Intelligence and Emotional Intelligence and their impact on workplace performance.
Find the total required return : Required Returns. Suppose we observe a stock selling for $40 per share. The next dividend will be $1 per share, and you think the dividend will grow at 12.
Anticipatory breach and fundamental breach : What is the connection between anticipatory breach and fundamental breach?
Define the neurotrophin family of neurotrophic factors : Discuss the issues relating to the use of neurotrophins for human clinical use
Calculate the postretirement benefit expense : The service cost is $3,500,000. The appropriate interest rate is 8%. Calculate the postretirement benefit expense for 2015
What will the stock be worth in given years : Dividend Growth and Stock Valuation. The Brigapenski Co. has just paid a cash dividend of $2 per share. Investors require a 16 percent return from investments.
Profoundly changed your ethical and moral perspectives : Describe any pivotal experiences or situations in your life that profoundly changed your ethical/ moral perspectives
Describe some potential problems with prescribing medication : Explain the connection between each theoretical orientation used by Dr. Remoc and the four interventions utilized in the case.
Is anne correct in her assumption that she will be placed : Is Anne correct in her assumption that she will be placed on digoxin. What other medications may be considered for her

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd