Problem 17-19 Postretirement benefits; schedule of postretirement benefit costs [LO17-9, 17-10, 17-11]

Stockton Labeling Company has a retiree health care plan. Employees become fully eligible for benefits after working for the company eight years. Stockton hired Misty Newburn on January 1, 2013. As of the end of 2013, the actuary estimates the total net cost of providing health care benefits to Newburn during her retirement years to have a present value of $22,000. The actuarys discount rate is 10%.

Required:

Prepare a schedule that shows the EPBO, the APBO, the service cost, the interest cost, and the postretirement benefit expense for each of the years 2013-2020. (Due to rounding 2020 EPBO may not equal total total expense. Enter your answers in whole dollars.)

Problem 17-20 Postretirement benefits; relationship among elements of postretirement benefit plan [LO17-9, 17-10, 17-11]

The information below pertains to the retiree health care plan of Thompson Technologies:

	($ in 000s)
	2013 Beginning Balances		2013 Ending Balances
Accumulated postretirement benefit obligation	$	650	$	675
Plan assets		0		75
Funded status		(650)		(600)
Prior service costAOCI		185		154
Net gainAOCI		(63)		(62)

Thompson began funding the plan in 2013 with a contribution of $140,000 to the benefit fund at the end of the year. Retirees were paid $54,000. The actuarys discount rate is 6%. There were no changes in actuarial estimates and assumptions.

Required:

1.	Determine the service cost for 2013. (Enter your answer in thousands.)

2.	Determine the postretirement benefit expense for 2013. (Enter your answer in thousands.)

3.	Determine the net postretirement benefit liability for 2013. (Enter your answer in thousands.)

Problem 17-18 Postretirement benefits; EPBO calculations; APBO calculations; components of postretirement benefit expense; present value concepts [LO17-9, 17-10]

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 1990 by Century-Fox at age 35 and is expected to retire at the end of 2018 (age 63). 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 5%. The plan is not prefunded. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

Year	Expected Age	Net Cost
2019	64	$	5,700
2020	65		6,100
2021	66		4,000
2022	67		4,200
2023	68		4,500

Assume costs are incurred at the end of each year.

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 2013?

4.	With respect to Snyder, what is the company's accumulated postretirement benefit obligation at the end of 2013?

5.	With respect to Snyder, what is the company's accumulated postretirement benefit obligation at the end of 2014?

6.	What is the service cost to be included in 2014 postretirement benefit expense?

7.	What is the interest cost to be included in 2014 postretirement benefit expense?

8.	Show how the APBO changed during 2014 by reconciling the beginning and ending balances.