Problem 17-195Data pertaining to the postretirement health care benefit plan of Danielson Delivery Service include the following for the currentcalendar year:Service costAPBO, January 1Plan assets (fair value), January 1Prior service cost (current year amortization, $2,000)Retiree benefits paid (end of year)Net gain (current year amortization, $1,000)Contribution to health care fund (end of year)Return on plan assets (actual and expected)Discount rate$153,000$830,000$ 83,000$ 93,000$ 93,000$ 95,000$ 88,00010%8%Required:1. Determine Danielson's postretirement benefit expense for the current year.2. Prepare the journal entries to record the benefit expense and funding for the current year.Complete this question by entering your answers in the tabs below.Required 1Required 2Determine Danielson's postretirement benefit expense for the current year. (Amounts to be deducted should be indicated witha minus sign.)Post Retirement Benefit ExpensePostretirement benefit expense< Required 1Required 2 >

Solution:- Calculation of post retirement benefit expenses as follows under:- Workings:- Interest…

Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine Danielson's postretirement benefit expense for the current year. (Amounts to be deducted should be indicated with a minus sign.) Post Retirement Benefit Expense Postretirement benefit expense

Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine Danielson's postretirement benefit expense for the current year. (Amounts to be deducted should be indicated with a minus sign.) Post Retirement Benefit Expense Postretirement benefit expense

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Tax Deferred Retirement Benefits

It stands for Simplified Employee Pension Individual Retirement Account. This savings plan is for self-employed persons such as independent contractors, freelancers, entrepreneurs, etc. The tax rules of SEP IRA are the same as traditional IRA. Entrepreneurs can also open SEP IRA accounts for their employees and gain a tax advantage. The employees cannot make contributions to these accounts by themselves however they will be taxed upon withdrawal.

Question

Problem 17-195
Data pertaining to the postretirement health care benefit plan of Danielson Delivery Service include the following for the current
calendar year:
Service cost
APBO, January 1
Plan assets (fair value), January 1
Prior service cost (current year amortization, $2,000)
Retiree benefits paid (end of year)
Net gain (current year amortization, $1,000)
Contribution to health care fund (end of year)
Return on plan assets (actual and expected)
Discount rate
$153,000
$830,000
$ 83,000
$ 93,000
$ 93,000
$ 95,000
$ 88,000
10%
8%
Required:
1. Determine Danielson's postretirement benefit expense for the current year.
2. Prepare the journal entries to record the benefit expense and funding for the current year.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Determine Danielson's postretirement benefit expense for the current year. (Amounts to be deducted should be indicated with
a minus sign.)
Post Retirement Benefit Expense
Postretirement benefit expense
< Required 1
Required 2 >

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