Required: 1. Compute the OPRB expense for 2019 if Vasby uses the average remaining service life to amortize the prior service cost. Cin plan is not funded.
On January 1, 2019, Vasby software company adapted a healthcare plan for its retired employees. To determine eligibility for benefits, Westby retroactively gives credit to the date of hire for each employee. The service cost for 2019 is $8420. The plan is not funded, and the discount rate is 8%. All employees were hired at age 28 and became eligible for full benefits at age 58. Employees he was paid $7390 for post retirement healthcare benefits in 2019. On December 31, 2019, the accumulated post retirement benefit obligation for employees B and see were $76,320 and $41,020 respectively. Additional information on January 1, 2019 is as follows:
employee A- age 31- expected retirement age 65- accumulated post retirement benefit obligation $9,000.
employee B- age 55- expected retirement age 65- accumulated post retirement benefit obligation $78,600.
employee C- age 67- expected retirement age --- accumulated post retirement benefit obligation $45,900.
total accumulated post retirement benefit obligation $133,500.
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