Question
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
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 1998 by Century-Fox at age 31 and is expected to retire at the end of 2026 (age 60). 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 8%. The plan is not prefunded. Assume costs are incurred at the end of each year.
Year | Expected Age | Net Cost | ||
2027 | 61 | $ | 4,800 | |
2028 | 62 | 5,200 | ||
2029 | 63 | 3,100 | ||
2030 | 64 | 3,300 | ||
2031 | 65 | 3,600 | ||
Required: 2. Calculate the present value of the net benefits as of the expected retirement date. 3. With respect to Snyder, what is the company's expected postretirement benefit obligation at the end of 2021? 4. With respect to Snyder, what is the company's accumulated postretirement benefit obligation at the end of 2021? 5. With respect to Snyder, what is the company's accumulated postretirement benefit obligation at the end of 2022? 6. What is the service cost to be included in 2022 postretirement benefit expense? 7. What is the interest cost to be included in 2022 postretirement benefit expense? 8. Show how the APBO changed during 2022 by reconciling the beginning and ending balances.
Someone please help with this answer. I have posted this many times and nobody can seem to get the correct answer. Thank you so much for your help!
Req 2 to 7 Req 8 Calculate the present value of the net benefits as of the expected retirement date. With respect to Snyder, what is the company's expected and accumulated postretirement benefit obligation at the end of 2021 and 2022? What is the service cost and interest cost to be included in 2022 postretirement benefit expense? (Do not round intermediate calculations. Round your final answers to nearest whole dollar.) Show less Present value of the net benefits $ 16,239 $ Expected postretirement benefit obligation APBO 2021 11,052 9,078 $ APBO 2022 $ 10,231 Service cost $ 428 x $ $ Interest cost 726 X Req 2 to 7 Reg 8 Show how the APBO changed during 2022 by reconciling the beginning and ending balances. (Do not round intermediate calculations. Round your final answers to nearest whole dollar.) APBO at the beginning of 2022 $ 9,079 X Service cost 426 X Interest cost 726 APBO at the end of 2022 $ 10,231 Req 2 to 7 Req 8 Calculate the present value of the net benefits as of the expected retirement date. With respect to Snyder, what is the company's expected and accumulated postretirement benefit obligation at the end of 2021 and 2022? What is the service cost and interest cost to be included in 2022 postretirement benefit expense? (Do not round intermediate calculations. Round your final answers to nearest whole dollar.) Show less Present value of the net benefits $ $ 16,239 $ 11,052 Expected postretirement benefit obligation APBO 2021 $ 9,776 X 10,202 X APBO 2022 $ Service cost $ 424 x Interest cost $ 782 X Req 2 to 7 Req 8 Show how the APBO changed during 2022 by reconciling the beginning and ending balances. (Do not round intermediate calculations. Round your final answers to nearest whole dollar.) APBO at the beginning of 2022 $ 9,079 X Service cost 426 X Interest cost 726 X APBO at the end of 2022 10,231Step by Step Solution
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