Zeff Manufacturing provides the following information about its postretirement health care plan for 2008:

Required:
1. Determine Zeff’s postretirement health care expense in 2008.
2. Determine the fair value of plan assets at December 31, 2008.
3. Determine the APBO amount at December 31, 2008.

Transcribed Image Text:

Accumulated postretirement benefit obligation on 1/1/08 $300,000 Fair value of plan assets on 1/1/08 30,000 Benefits paid to retirees at 12/31/08 Service cost for 2008 Recognized prior service cost 6,500 20,000 10,000 Recognized actuarial loss Actual return on plan assets Contributions to the plan at 12/31/08 7,000 4,500 12,000 Discount rate Expected long-run rate of return on plan assets 8% 10%