Question 1.

ABC has a post-retirement medical plan that provides medical care and life insurance benefits to employees who render 5 years of service and attain age 55 while in service. At the end of 2013, employee A is 46. She was hired at age 26 and is expected to retire at age 62. The expected post-retirement benefit obligation (EPBO) for employee A at the end of 2013 is $23160. For employee A calculate the following:

a. Attribution period is: Answer

b. Years of service is: Answer

c. APBO end of 2013 is: Answer

d. Service cost on APBO for 2013 is:

Question 2.

ABC has a defined benefit pension plan.

ABC reported a net pension liability in last year's balance sheet.

This year, the company revised its estimate of future salary levels causing its PBO estimate to increase by $582.

The actual return on plan assets was $336 while the expected return was $322.

The effect on accumulated other comprehensive income (AOCI) is: