Classified Elec. has an unfunded retiree health care plan. Each of the company's three employees has been with the firm since its inception at the beginning of 1996. As of the end of 1997, the actuary estimates the total net cost of providing health care benefits to employees during their retirement years to have a present value of $72000. Each of the employees will become fully eligible for benefits after 28 more years of service but aren't expected to retire for 35 more years. The interest rate is 6%. what is the accumulated post retirement benefit obligation at the end of 1998? what is the expected postretirement benefit obligation at the end of 1998
Classified Elec. has an unfunded retiree health care plan. Each of the company's three employees has been with the firm since its inception at the beginning of 1996. As of the end of 1997, the actuary estimates the total net cost of providing health care benefits to employees during their retirement years to have a present value of $72000. Each of the employees will become fully eligible for benefits after 28 more years of service but aren't expected to retire for 35 more years. The interest rate is 6%. what is the accumulated post retirement benefit obligation at the end of 1998? what is the expected postretirement benefit obligation at the end of 1998
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Classified Elec. has an unfunded retiree health care plan. Each of the company's three employees has been with the firm since its inception at the beginning of 1996. As of the end of 1997, the actuary estimates the total net cost of providing health care benefits to employees during their retirement years to have a present value of $72000. Each of the employees will become fully eligible for benefits after 28 more years of service but aren't expected to retire for 35 more years. The interest rate is 6%.
what is the accumulated post retirement benefit obligation at the end of 1998?
what is the expected postretirement benefit obligation at the end of 1998?
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