The following facts relate to the Patton Co. postretirement benefits plan for 2015: Service cost $180,000 Discount rate 12% APBO, January 1, 2015 $1,500,000 EPBO, January 1, 2015 $2,000,000 Benefits payments to employees $115,000 The amount of postretirement expense for 2015 is a. 180,000 b. 315,000 c. 360,000 d. 430,000

The following facts relate to the Patton Co. postretirement benefits plan for 2015: Service cost $180,000 Discount rate 12% APBO, January 1, 2015 $1,500,000 EPBO, January 1, 2015 $2,000,000 Benefits payments to employees $115,000 The amount of postretirement expense for 2015 is a. 180,000 b. 315,000 c. 360,000 d. 430,000

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

Employee Benefits

In an organization employees are the most important resource and most important asset. They can lead an organization to the sky or can be the reason for unsuccessful of business. Therefore, it is very much important that employees of an organization should be satisfied by the environment of the organization and most importantly with the salary, wages incentives, etc.

Question

The following facts relate to the Patton Co. postretirement benefits plan for 2015:

Service cost	$180,000
Discount rate	12%
APBO, January 1, 2015	$1,500,000
EPBO, January 1, 2015	$2,000,000
Benefits payments to employees	$115,000

The amount of postretirement expense for 2015 is

a. 180,000

b. 315,000

c. 360,000

d. 430,000

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