On January 1, 2024, Tom's Transport Company's accumulated postretirement benefit obligation was $28,000,000. At the end of 2024, retiree benefits paid were $3,300,000. Service cost for 2024 is $5,800,000. At the end of 2021, there was no prior service cost or net gain or loss. Assumptions regarding the trend of future health care costs were revised at the end of 2024. This revision caused the actuary to revise downward the estimate of the APBO by $480,000. The appropriate discount rate was 7%.

On January 1, 2024, Tom's Transport Company's accumulated postretirement benefit obligation was $28,000,000. At the end of 2024, retiree benefits paid were $3,300,000. Service cost for 2024 is $5,800,000. At the end of 2021, there was no prior service cost or net gain or loss. Assumptions regarding the trend of future health care costs were revised at the end of 2024. This revision caused the actuary to revise downward the estimate of the APBO by $480,000. The appropriate discount rate was 7%.

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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