Grammar, Inc., offers its full-time employees pension and other postretirement benefits, pri-marily health insurance. During the current year, pension benefits for the employees totaled $250,000. Other postretirement benefits totaled $140,000. The pension benefits are fullyfunded by the company by transferring cash to a trustee that administers the plan. The otherpostretirement benefits are similarly funded, but only at the 50 percent level. Determine thetotal amount that Grammar will need to transfer to its trustee for both benefit plans during thecurrent year.

Grammar, Inc., offers its full-time employees pension and other postretirement benefits, pri-marily health insurance. During the current year, pension benefits for the employees totaled $250,000. Other postretirement benefits totaled $140,000. The pension benefits are fullyfunded by the company by transferring cash to a trustee that administers the plan. The otherpostretirement benefits are similarly funded, but only at the 50 percent level. Determine thetotal amount that Grammar will need to transfer to its trustee for both benefit plans during thecurrent year.

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter19: Deferred Compensation

Section: Chapter Questions

Problem 16CE

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