Oregon Company's employees are eligible for retirement with benefits at the end of the year in which both age 60 is attained and they have completed 35 years of service. The benefits provide 15 years' reimbursement for health care services of $31,000 annuaily, beginning one year from the date of retirement Ralph Young was hired at the beginning of 1988 by Oregon after turning age 22 and is expected to retire at the end of 2026 (age 60). The discount rate is 5%. The plan is unfunded. The PV of an ordinary annuity of $1 where n-15 and/-5% is 10.37966. The PV of $1 where n-2 and/-5% is 0.90703 With respect to Ralph, what is Oregon's accumulated postretirement benefit obligation (APBO) at the end of 2024, rounded to the nearest dollar? Multiple Choice $195.334 $291855

Oregon Company's employees are eligible for retirement with benefits at the end of the year in which both age 60 is attained and they have completed 35 years of service. The benefits provide 15 years' reimbursement for health care services of $31,000 annuaily, beginning one year from the date of retirement Ralph Young was hired at the beginning of 1988 by Oregon after turning age 22 and is expected to retire at the end of 2026 (age 60). The discount rate is 5%. The plan is unfunded. The PV of an ordinary annuity of $1 where n-15 and/-5% is 10.37966. The PV of $1 where n-2 and/-5% is 0.90703 With respect to Ralph, what is Oregon's accumulated postretirement benefit obligation (APBO) at the end of 2024, rounded to the nearest dollar? Multiple Choice $195.334 $291855

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter19: Accounting For Post Retirement Benefits

Section: Chapter Questions

Problem 11RE

See similar textbooks

Similar questions

Oregon Company's employees are eligible for retirement with benefits at the end of the year in which both age 60 is attained and they have completed 35 years of service. The benefits provide 15 years' reimbursement for health care services of $39,000 annually, beginning one year from the date of retirement. Ralph Young was hired at the beginning of 1988 by Oregon after turning age 22 and is expected to retire at the end of 2026 (age 60). The discount rate is 4 %. The plan is unfunded. The PV of an ordinary annuity of $1 where n = 15 and i = 4% is 11.11839. The PV of $1 where n = 2 and i = 4% is 0.92456. With respect to Ralph, what is the service cost to be included in Oregon's 2024 postretirement benefit expense, rounded to the nearest dollar? Multiple Choice $6,881 $ 12, 382 $39,000 $10, 280
Oregon Co.'s employees are eligible for retirement with benefits at the end of the year in which both age 60 is attained and they have completed 35 years of service. The benefits provide 15 years’ reimbursement for health care services of $26,000 annually, beginning one year from the date of retirement.Ralph Young was hired at the beginning of 1991 by Oregon after turning age 22 and is expected to retire at the end of 2029 (age 60). The discount rate is 5%. The plan is unfunded.The PV of an ordinary annuity of $1 where n = 15 and i = 5% is 10.37966.The PV of $1 where n = 2 and i = 5% is 0.90703.What is the present value of Ralph's net benefits as of his expected retirement date, rounded to the nearest dollar?
Oregon Co.'s employees are eligible for retirement with benefits at the end of the year in which both age 60 is attained and they have completed 35 years of service. The benefits provide 15 years’ reimbursement for health care services of $27,000 annually, beginning one year from the date of retirement. Ralph Young was hired at the beginning of 1992 by Oregon after turning age 22 and is expected to retire at the end of 2030 (age 60). The discount rate is 3%. The plan is unfunded.The PV of an ordinary annuity of $1 where n = 15 and i = 3% is 11.93794.The PV of $1 where n = 2 and i = 3% is 0.94260. With respect to Ralph, what is the interest cost to be included in Oregon's 2029 postretirement benefit expense, rounded to the nearest dollar?
Oregon Co.‘s employees are eligible for retirement with benefits at the end of the year in which both age 60 is attained and they have completed 35 years of service. The benefits provide 15 years reimbursement for health cate services of $35,000 annually, beginning one year from the date of retirement. Ralph Young was hired at the beginning of 2000 by Oregon after turning age 22 and is expected to retire at the end 2038 (age 60). The discount rate is 5%. The plan is I funded PVOA $1 n=15 I=5% 10.37966 PV $1 n=2 i= 5% is .90703 With respect to Ralph, what is Oregon’s expected postretirement benefit obligation at the end of 2036, rounded to the nearest dollar?
Oregon Company's employees are eligible for retirement with benefits at the end of the year in which both age 60 is attained and they have completed 35 years of service. The benefits provide 15 years' reimbursement for health care services of $37,000 annually, beginning one year from the date of retirement. Ralph Young was hired at the beginning of 1988 by Oregon after turning age 22 and is expected to retire at the end of 2026 (age 60) The discount rate is 4%. The plan is unfunded. The PV of an ordinary annuity of $1 where n-15 and /= 4% is 11.11839. The PV of $1 where n=2 and /= 4% is 0.92456. With respect to Ralph, what is the interest cost to be included in Oregon's 2025 postretirement benefit expense, rounded to the nearest dollar? Multiple Choice C $14.434 $14,509 $15,398 None of these answer choices are correct Activate Win Go to Settings to
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, 2021. As of the end of 2021, the actuary estimates the total net cost of providing health care benefits to Newburn during her retirement years to have a present value of $18,000. The actuary’s 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 2021–2028.
Oregon Company's employees are eligible for retirement with benefits at the end of the year in which both age 60 is attained and they have completed 35 years of service. The benefits provide 15 years' rimbursement for health care services of $21,000 annually, beginning one year from the date of retirement Ralph Young was hired at the beginning of 1988 by Oregon after turning age 22 and is expected to retire at the end of 2026 (age 60) The discount rate is 3%. The plan is unfunded. The PV of an ordinary annuity of $1 where n-15 and/-3% is 1193794 The PV of $1 where n-2 and/-3% is 094260 With respect to Ralph, what is Oregon's expected postretirement beneft obligation (EPBO) et the end of 2024, rounded to the nearest dolar? Muple Choice O O O $122.195 $236,307 $60 1764.400
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, 2021. As of the end of 2021, the actuary estimates the total net cost of providing health care benefits to Newburn during her retirement years to have a present value of $15,000. The actuary’s 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 2021-2028. (Due to rounding 2020 EPBO may not equal to total total expense. Do not round intermediate calculations. Round your final answers to the nearest whole dollar.)
Company A has established a defined benefit plan for the employee. Annual payments under the plan are equal to highest lifetime salary multiplied by 2% multiplied by the number of years with the entity. On December 31, 2020, an employee had worked with the entity for 15 years. The current annual salary of the employee is P600,000. The employee is expected to retire in 10 years and the increase in salary is expected to be 4% per year. The discount rate is 10%. The employee is expected to live 8 years after retirement and shall receive the first annual pension payment one year after retirement. Compute for the ff: 1)Current service cost in 2021, 2022, 2023 and 2024 2)Interest expense in 2021, 2022, 2023 and 2024 3)PBO, Dec. 31,2021, Dec. 31,2022, Dec. 31,2023 and Dec. 31,2024
Rachel Company has established a defined benefit pension plan for its employees. Annual payments under the pension plan are equal to 3% of an employee’s highest lifetime salary multiplied by the number of years with the entity. An employee’s salary in 2021 was P300,000. The employee is expected to retire in 10 years and the salary increases are expected to average 4% per year during that period. On December 31, 2021, the employee has worked for 12 years. The appropriate discount rate is 10% and the employee is expected to live for 5 years after retirement. 1. What is the current service cost for 2022? 2. What is the interest cost for 2023? 3. What is the projected benefit obligation on December 31, 2024?
Rachel Company has established a defined benefit pension plan for its employees. Annual payments under the pension plan are equal to 3% of an employee’s highest lifetime salary multiplied by the number of years with the entity. An employee’s salary in 2021 was P300,000. The employee is expected to retire in 10 years and the salary increases are expected to average 4% per year during that period. On December 31, 2021, the employee has worked for 12 years. The appropriate discount rate is 10% and the employee is expected to live for 5 years after retirement. a. What is the amount of annual pension payment to be used in computing the employee’s projected benefit obligation on December 31, 2021? b. What is the projected benefit obligation on December 31, 2021? c. What is the current service cost for 2022?
Rachel Company has established a defined benefit pension plan for its employees. Annual payments under the pension plan are equal to 3% of an employee’s highest lifetime salary multiplied by the number of years with the entity. An employee’s salary in 2021 was P300,000. The employee is expected to retire in 10 years and the salary increases are expected to average 4% per year during that period. On December 31, 2021, the employee has worked for 12 years. The appropriate discount rate is 10% and the employee is expected to live for 5 years after retirement. 1. What is the current service cost for 2022?