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.)

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.)

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter13: Accounting For Payroll And Payroll Taxes

Section: Chapter Questions

Problem 1CP

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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.
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, 2016. As of the end of 2016, 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 2016–2023.
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On January 1, 2019, Vasby software company adapted a healthcare plan for its retired employees. To determine eligibility for benefits, Westby retroactively gives credit to the date of hire for each employee. The service cost for 2019 is $8420. The plan is not funded, and the discount rate is 8%. All employees were hired at age 28 and became eligible for full benefits at age 58. Employees he was paid $7390 for post retirement healthcare benefits in 2019. On December 31, 2019, the accumulated post retirement benefit obligation for employees B and see were $76,320 and $41,020 respectively. Additional information on January 1, 2019 is as follows: employee A- age 31- expected retirement age 65- accumulated post retirement benefit obligation $9,000. employee B- age 55- expected retirement age 65- accumulated post retirement benefit obligation $78,600. employee C- age 67- expected retirement age --- accumulated post retirement benefit obligation $45,900. total accumulated post retirement…
On January 1, 2019, Vasby Software Company adopted a healthcare plan for its retired employees. To determine eligibility for benefits, Vasby retroactively gives credit to the date of hire for each employee. The service cost for 2019 is $7,840. The plan is not funded, and the discount rate is 10%. All employees were hired at age 28 and become eligible for full benefits at age 58. Employee C was paid $6,510 for postretirement healthcare benefits in 2019. On December 31, 2019, the accumulated postretirement benefit obligation for Employees B and C were $71,270 and $42,010, respectively. Additional information on January 1, 2019, is as follows: Employee Status Age Expected Retirement Age Accumulated Postretirement Benefit Obligation 1. Employee 31 65 $9,300 2. Employee 55 65 75,600 3. Retired 67 — 50,700 $135,600 Required: 1. Compute the OPRB expense for 2019 if Vasby uses the average remaining service life to amortize the prior service cost.…
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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
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 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 $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?