The following data are for Guava Company's retiree health care plan for the current calendar year. Number of employees covered Years employed as of January 1 Attribution period EPBO, January 1 EPBO, December 31 Interest rate Funding and plan assets Multiple Choice O O What is the service cost to be included in the current year's postretirement benefit expense? (Round your answer to the nearest whole dollar.) $3,200. $3,456. $3,900. 5 4 (each) 20years $3,306. $64,000 $69,120 8% None

The following data are for Guava Company's retiree health care plan for the current calendar year. Number of employees covered Years employed as of January 1 Attribution period EPBO, January 1 EPBO, December 31 Interest rate Funding and plan assets Multiple Choice O O What is the service cost to be included in the current year's postretirement benefit expense? (Round your answer to the nearest whole dollar.) $3,200. $3,456. $3,900. 5 4 (each) 20years $3,306. $64,000 $69,120 8% None

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following data are for Guava Company's retiree health care plan for the current calendar year. Number of employees covered Years employed as of January 1 Attribution period EPBO, January 1 EPBO, December 31 Interest rate Funding and plan assets Multiple Choice General Journal Postretirement benefit expense APBO What is the correct entry to record postretirement benefit expense for the current year? Note: Do not round intermediate calculations and round your answers to the nearest whole dollar. General Journal Postretirement benefit expense APBO General Journal Postretirement benefit expense APBO General Journal Postretirement benefit expense 5 4 (each) years 20 Cash $ 56,000 $ 61,040 9% None Debit Credit 3,060 3,060 Debit Credit 4,100 4,100 Debit Credit 4,060 4,060 Debit Credit 4,060 4,060
The following data are for Guava Company's retiree health care plan for the current calendar year. Number of employees covered Years employed as of January 1 Attribution period EPBO, January 1 EPBO, December 31 Interest rate Funding and plan assets None What is the service cost to be included in the current year's postretirement benefit expense? O $3,200. $4,000. 5 4(each) 20years O $3,180. O $3,000. $ 60,000 $ 63,600 6%
Classified Electronics has an unfunded retiree health care plan. Each of the company's three employees has been with the firm since its inception at the beginning of 2023. As of the end of 2024, the actuary estimates the total net cost of providing health care benefits to employees during their retirement years to have a present value of $84,000. Each of the employees will become fully eligible for benefits after 22 more years of service but aren't expected to retire for 35 more years. The interest rate is 6%. Required: 1. What is the expected postretirement benefit obligation at the end of 2024? 2. What is the accumulated postretirement benefit obligation at the end of 2024? 3. What is the expected postretirement benefit obligation at the end of 2025? 4. What is the accumulated postretirement benefit obligation at the end of 2025? 1. Expected postretirement benefit obligation 2024 2. Accumulated postretirement benefit obligation 2024 3. Expected postretirement benefit obligation 2025…
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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 Expected postretirement benefit obligation, January 11 Expected postretirement benefit obligation, December 31 Interest rate Funding Complete this question by entering your answers in the tabs below. 1. Accumulated postretirement benefit obligation 2 Interest cost 3. Service cost 2 3 [each] 25 years Required: 1. What is the accumulated postretirement benefit obligation at the beginning of 2024? 2. What is interest cost to be included in 2024 postretirement benefit expense? 3. What is service cost to be included in 2024 postretirement benefit expense? 4. Prepare the journal entry to record the postretirement benefit expense for 2024. Reg 1 to 3 $50,000 $ 53,000 Req 4 > 6 % Req 1 to 3. Req 4 What is the accumulated postretirement benefit obligation at the beginning of 2024? What is interest cost…
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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 Fair value of plan assets Average remaining service period to retirement Average remaining service period to full eligibility Postretirement Benefit Expense Service cost Interest cost Return on plan assets Amortization of prior service cost Postretirement benefit expense 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 $11,000,000. Management chooses to amortize this amount on a straight- line basis. The service cost is $31,000,000. The appropriate interest rate is 10%. ($ in millions) Required: Calculate the postretirement benefit expense for the current year. Note: Enter your answers in millions rounded to 2…
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