Solution-Vasby software company adopted a healthcare plan

Vasby software company adopted a healthcare plan

Reference no: EM13867374

On January 1, 2010, the Vasby Software Company adopted a healthcare plan for its retired employees. To determine eligibility for benefits, the company retroactively gives credit to the date of hire for each employee. The service cost for 2010 is $8,000. The plan is not funded, and the discount rate is 10%. All employees were hired at age 28 and become eligible for full benefits at age 58. Employee C was paid $7,000 for postretirement healthcare benefits in 2010. On December 31, 2010, the accumulated postretirement benefit obligation for Employees B and C were $77,000 and $41,500, respectively. Additional information on January 1, 2010 is as follows:

1346_268-B-A-P-P-B (466).png

Required:

1. Compute the OPEB expense for 2010 if the company uses the average remaining service life to amortize the prior service cost.

2. Prepare all the required journal entries for 2010 if the plan is notfunded.

Reference no: EM13867374

Questions Cloud

Describe the three essential management skills : Describe the three essential management skills that differentiate effective managers from ineffective ones. Provide a work place example of how these skills could be used when dealing with the challenge of a work place recession.

What is the potential impact of such actions : Using social media sites such as Facebook and Twitter and any other sources identify other examples of consumers using such media to run campaigns that have impacted on the strategies of international marketers. What is the potential impact of suc..

Identify several strategic uses of internet technologies : Identify several strategic uses of Internet technologies and give examplesof how they can help a business gain competitive advantages

Prepare a marketing plan around : Each question needs to be atleast 250 words and there needs to be atlease 2 references total. It can be common for a top-level manager to watch a single focus group and get excited about something a customer says, and prepare a marketing plan around ..

Vasby software company adopted a healthcare plan : On January 1, 2010, the Vasby Software Company adopted a healthcare plan for its retired employees. To determine eligibility for benefits, the company retroactively gives credit to the date of hire for each employee.

Define "externalities" as they relate to the price : Define "externalities" as they relate to the price of goods and services, and examine how they can distort market forces of supply and demand, detailing both positive and negative effects.

Distribution transformer and test data : Consider a 75kVA, 7500/480V, 60 Hz distribution transformer and following test data: O/C Test (on Primary) - VOC = 7500V, IOC = 0.35 A, POC = 473 W and S/C Test (on Primary) - VSC = 499V, ISC = 10A and PSC = 1050 W. Determine the following:

The federal government uses many techniques to ensure : The federal government uses many techniques to ensure that multiple high officials are not exposed to the same vulnerabilities at the same time. For example, the president and the vice-president would be taken to separate safe areas in the event of a..

Explain the bias that managers typically face : Explain the bias that managers typically face, including hindsight bias, anchoring bias, overconfidence bias, and confirmation bias.

User Account

All Pages

Vasby software company adopted a healthcare plan

Reference no: EM13867374

Reference no: EM13867374

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

Critics have claimed that a widely used accounting system

Amanda and chris mcdermott own a small business plastic

How much additional revenue would the ride have to generate

Effect of the sale of the season tickets

Compare the tax consequences to the shareholder and the

Townson company had gross wages of 200000 during the week

Stacks of inventory

Agarwal technologies was founded 10 years ago it has been

Journalize the entry to record the adjustment of the assets

Amount relates to the factory

The predetermined manufacturing overhead rate is 10 per

Stockholders equity section of beta balance sheet

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT