5points ItemSkipped eBook Print Check my workCheck My Work button is now enabled Item 5 Item 5 5 points Item Skipped The information below pertains to the retiree health care plan of Thompson Technologies: ($ in 000s) 2018 Beginning Balances 2018 Ending Balances Accumulated postretirement benefit obligation $ 560 $ 585 Plan assets 0 75 Funded status (560 ) (510 ) Prior service cost–AOCI 195 158 Net gain–AOCI (65 ) (64 ) Thompson began funding the plan in 2018 with a contribution of $142,000 to the benefit fund at the end of the year. Retirees were paid $53,000. The actuary’s discount rate is 5%. There were no changes in actuarial estimates and assumptions. Required: 1. Determine the service cost for 2018. 2. Determine the postretirement benefit expense for 2018. 3. Determine the net benefit liability for 2018.
5points ItemSkipped eBook Print Check my workCheck My Work button is now enabled Item 5 Item 5 5 points Item Skipped The information below pertains to the retiree health care plan of Thompson Technologies: ($ in 000s) 2018 Beginning Balances 2018 Ending Balances Accumulated postretirement benefit obligation $ 560 $ 585 Plan assets 0 75 Funded status (560 ) (510 ) Prior service cost–AOCI 195 158 Net gain–AOCI (65 ) (64 ) Thompson began funding the plan in 2018 with a contribution of $142,000 to the benefit fund at the end of the year. Retirees were paid $53,000. The actuary’s discount rate is 5%. There were no changes in actuarial estimates and assumptions. Required: 1. Determine the service cost for 2018. 2. Determine the postretirement benefit expense for 2018. 3. Determine the net benefit liability for 2018.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The information below pertains to the retiree health care plan of Thompson Technologies:
| ($ in 000s) | |||||||||||
| 2018 Beginning Balances |
2018 Ending Balances |
||||||||||
| Accumulated postretirement benefit obligation | $ | 560 | $ | 585 | |||||||
| Plan assets | 0 | 75 | |||||||||
| Funded status | (560 | ) | (510 | ) | |||||||
| Prior service cost–AOCI | 195 | 158 | |||||||||
| Net gain–AOCI | (65 | ) | (64 | ) | |||||||
Thompson began funding the plan in 2018 with a contribution of $142,000 to the benefit fund at the end of the year. Retirees were paid $53,000. The actuary’s discount rate is 5%. There were no changes in actuarial estimates and assumptions.
Required:
1. Determine the service cost for 2018.
2. Determine the postretirement benefit expense for 2018.
3. Determine the net benefit liability for 2018.
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