User Account

All Pages

Calculate the present value of the net benefits

Assignment Help Accounting Basics
Reference no: EM132013528

Problem - Century-Fox Corporation's employees are eligible for postretirement health care benefits after both being employed at the end of the year in which age 60 is attained and having worked 20 years. Jason Snyder was hired at the end of 1990 by Century-Fox at age 34 and is expected to retire at the end of 2018 (age 62). His retirement is expected to span five years (unrealistically short in order to simplify calculations). The company's actuary has estimated the net cost of retiree benefits in each retirement year as shown below. The discount rate is 6%. The plan is not prefunded. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

Year Expected Age Net Cost

2019 63 $4,000

2020 64 4,400

2021 65 2,300

2022 66 2,500

2023 67 2,800

Assume costs are incurred at the end of each year.

1. Calculate the present value of the net benefits as of the expected retirement date.

2. With respect to Snyder, what is the company's expected postretirement benefit obligation at the end of 2013?

3. With respect to Snyder, what is the company's accumulated postretirement benefit obligation at the end of 2013?

4. With respect to Snyder, what is the company's accumulated postretirement benefit obligation at the end of 2014?

5. What is the service cost to be included in 2014 postretirement benefit expense?

6. What is the interest cost to be included in 2014 postretirement benefit expense?

7. What is the interest cost to be included in 2014 postretirement benefit expense?

Reference no: EM132013528

Questions Cloud

Analyses the concepts of scientific management approach : You (in the role of Lee) are required to write an essay of up to 3,000 words which investigates and critically analyses the concepts of Scientific Management.
What are the tasks of the federal reserve system : What are the tasks of the Federal Reserve System? Why is that the business community is so sensitive to its decisions?
Explain h-ds competitive advantage in global markets : Explain H-D's competitive advantage in Global Markets. Determine and explain entry strategies for global expansion.
What is an example of the best that you have experienced : What is an example of the worst training room that you have experienced? What is an example of the best that you have experienced?
Calculate the present value of the net benefits : Assume costs are incurred at the end of each year. Calculate the present value of the net benefits as of the expected retirement date
Valuing a new start-up venture : What are teh various valuation techiques and the advantages and disadvantages of each as it relates to valuing a new start-up venture?
Goal of a firm is to maximize wealth : The goal of a firm is to maximize wealth, what is the goal of each individual person? What do economists and finance people assume is the goal of each person?
Design all-inclusive strategy for the launch of costa coffee : Provide detailed discussion on the various types of decisions to be taken by the top management of Costa Coffee UK to devise the market development plan.
Identify all relevant income statement and balance sheet : Assuming that financial statements are prepared for June and July, identify all relevant income statement and balance sheet accounts for the above transactions

Reviews

Write a Review

Accounting Basics Questions & Answers

  Find the eps and dividend yield of a company

Find the EPS, P/E ratio, and dividend yield of a company that has six million shares of common stock outstanding (the shares trade in the market at $30).

  What is the amount of dividends received by the stockholders

The board of directors declares and pays a $45,000 dividend in 2010. What is the amount of dividends received by the common stockholders in 2010

  Accounts receivable balances

Parr Hardware Store had net credit sales of $5,200,000 and cost of goods sold of $4,000,000 for the year. The Accounts Receivable balances at the beginning and end of the year were $600,000 and $700,000, respectively. The receivables turnover was ..

  Silverman company purchased machinery

Compute depreciation under the straight-line, units-of-output, working hours, sum-of-the-years’-digits, and double-declining balance methods.

  Prepare the journal entry to record income tax expense

Teri expects to report taxable income through 20x3. Prepare journal entry to record income tax expense, deferred income taxes, and income tax payable for 20x0

  What was the firm accounting profit

A firm had sales revenue of $1 million last year. It spent $600,000 on labor, $150,000 on capital and $200,000 on materials.

  Problem regarding the head preliminary expenses

The aggregate amount of all the expenditure falling under the head preliminary expenses incurred under section 3________, for an Indian company the aggregate of all the expenditure can be 5% of the cost of project or 5% of capital employed whichev..

  The ward county hospital center wchc wants to buy a new

the ward county hospital center wchc wants to buy a new mobile primary care van to use in screening residents in an

  Calculate the total amount of overhead applied to job

Required: Calculate the total amount of overhead applied to Job K369 in both departments. (Do not round intermediate calculations.)

  Wendy receives a proportionate nonliquidating distribution

wendy receives a proportionate nonliquidating distribution from the wxy partnership. the distribution consists of 75000

  Calculate the profit margin on sales

The 2013 income statement for Anderson TV and Appliance reported sales revenue of $270,000, Calculate the profit margin on sales, return on assets

  Determining the statements of cash flows

Following are statements of cash flows for Byron Ltd for the years ended 31 December:

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: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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