Answer in step by step with explanation.Don't use Ai and chatgpt 2Oregon Company's employees are eligible for retirement with benefits atthe end of the year in which both age 60 is attained and they havecompleted 35 years of service. The benefits provide 15 years'reimbursement for health care services of $40,000 annually, beginningone year from the date of retirement.Ralph Young was hired at the beginning of 1988 by Oregon after turningage 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 i= 4% is 0.92456.With respect to Ralph, what is the interest cost to be included inOregon's 2025 postretirement benefit expense, rounded to the nearestdollar? 2dollar?Multiple ChoiceО$15,604О$15,679О$16,568ОNone of these answer choices are correct.

Calculate the Present Value of Health Care BenefitsAnnual benefit: $40,000Number of years of…

Answered: 2 Oregon Company's employees are…

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 15E

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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 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
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' 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
Century-Fox Corporation’s employees are eligible for postretirement health care benefits after both beingemployed at the end of the year in which age 60 is attained and having worked 20 years. Jason Snyder was hiredat the end of 1993 by Century-Fox at age 34 and is expected to retire at the end of 2021 (age 62). His retirementis expected to span five years (unrealistically short in order to simplify calculations). The company’s actuary hasestimated the net cost of retiree benefits in each retirement year as shown below. The discount rate is 6%. Theplan is not prefunded. Assume costs are incurred at the end of each year.Year Expected Age Net Cost2022 63 $4,0002023 64 4,4002024 65 2,3002025 66 2,5002026 67 2,800Required:1. Draw a time line that depicts Snyder’s attribution period for retiree benefits and expected retirement period.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…
Hh1.
Frazier Refrigeration amended its defined benefit pension plan on December 31, 2021, to increase retirement benefits earned with each service year. The consulting actuary estimated the prior service cost incurred by making the amendment retroactive to prior years to be $110,000. Frazier’s 100 present employees are expected to retire at the rate of approximately 10 each year at the end of each of the next 10 years.Required:1. Using the service method, calculate the amount of prior service cost to be amortized to pension expense in each of the next 10 years.2. Using the straight-line method, calculate the amount of prior service cost to be amortized to pension expense in each of the next 10 years.
Denger
Prince Distribution Incorporated has an unfunded postretirement benefit plan. Medical care and life insurance benefits are provided to employees who render 10 years service and attain age 55 while in service. At the end of 2024, Jim Lukawitz is 31. He was hired by Prince at age 25 (6 years ago) and is expected to retire at age 62. The expected postretirement benefit obligation for Lukawitz at the end of 2024 is $50,000 and $54,000 at the end of 2025. Calculate the accumulated postretirement benefit obligation at the end of 2024 and 2025 and the service cost for 2024 and 2025, as pertaining to Lukawitz. Note: Enter your answers in whole dollar amount. Round your final answers to the nearest whole dollar. APBO Service 2024 ____ _____ 2025 ____ _____
Clark Industries has a defined benefit pension plan that specifies annual, year-end retirement benefits equal to 1.2% × Service years × Final year’s salary Stanley Mills was hired by Clark at the beginning of 2002. Mills is expected to retire at the end of 2046 after 45 years of service. His retirement is expected to span 15 years. At the end of 2021, 20 years after being hired, his salary is $80,000. The company’s actuary projects Mills’s salary to be $270,000 at retirement. The actuary’s discount rate is 7%. (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.)Required:1. Estimate the amount of Stanley Mills’s annual retirement payments for the 15 retirement years earned as of the end of 2021.2. Suppose Clark’s pension plan permits a lump-sum payment at retirement in lieu of annuity payments. Determine the lump-sum equivalent as the present value as of the retirement date of annuity payments during the retirement…

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