Question
Lily city uses a pay as you go approach for funding postemployment benefits other than pensions. The city reports no other postemployment benefits (OPEB) liabilities
Lily city uses a pay as you go approach for funding postemployment benefits other than pensions. The city reports no other postemployment benefits (OPEB) liabilities at the beginning of the year. At the end of the year Lily city reported the following information related to OPEB for the water enterprise fund:
Benefits paid $100,000.
Annual required contributions $500,000
unfunded actuarial accrued liability $ 800,000
What amount of expense for OPEB should Lily city water enterprise fund report in it fund level statement?
1) 600000
2)100000
3)500000
4) 1,400000
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