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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
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 $152,000,000 none 25 years 20 years 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 $22,000,000. Management chooses to amortize this amount on a straight-line basis. The service cost is $42,000,000. The appropriate interest rate is 10%. Required: Calculate the postretirement benefit expense for the current year. (Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50.) Postretirement Benefit Expense ($ in millions) Return on plan assets Postretirement benefit expense $ 0.00 APBO balance Fair value of plan assets Average remaining service period to retirement Average remaining service period to full eligibility $152,000,000 none 25 years 20 years On January 1 of the current year, Lender amends the plan to provide dental benefits. The actuary determines that the cos of making the amendment increases the APBO by $22,000,000. Management chooses to amortize this amount on a straight-line basis. The service cost is $42,000,000. The appropriate interest rate is 10%. Required: Calculate the postretirement benefit expense for the current year. (Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50.) Postretirement Benefit Expense ($ in millions) Amortization of net gain $ 0.00 Amortization of net loss Amortization of prior service cost Benefits paid
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