Lily city uses a pay as you go approach for funding postemployment benefits other than pensions. The city reports no other postemployment benefits (OPEB) liabilities at the beginning of the year. At the end of the year Lily city reported the following information related to OPEB for the water enterprise fund: Benefits paid $100,000. Annual required contributions $500,000 unfunded actuarial accrued liability $ 800,000 What amount of expense for OPEB should Lily city water enterprise fund report in it fund level statement? 1) 600000 2)100000 21500000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Lily city uses a pay as you go approach for funding postemployment benefits other than pensions. The city reports no
other postemployment benefits (OPEB) liabilities at the beginning of the year. At the end of the year Lily city reported the
following information related to OPEB for the water enterprise fund:
Benefits paid $100,000.
Annual required contributions $500,000
unfunded actuarial accrued liability $ 800,000
What amount of expense for OPEB should Lily city water enterprise fund report in it fund level statement?
1) 600000
2)100000
3)500000
4) 1,400000
Transcribed Image Text:Lily city uses a pay as you go approach for funding postemployment benefits other than pensions. The city reports no other postemployment benefits (OPEB) liabilities at the beginning of the year. At the end of the year Lily city reported the following information related to OPEB for the water enterprise fund: Benefits paid $100,000. Annual required contributions $500,000 unfunded actuarial accrued liability $ 800,000 What amount of expense for OPEB should Lily city water enterprise fund report in it fund level statement? 1) 600000 2)100000 3)500000 4) 1,400000
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