The projected benefit obligation was $80 million at the beginning of the year and $85 million at the end of theyear. Service cost for the year was $10 million. At the end of the year, there was no prior service cost and a negligible net loss–AOCI. The actuary’s discount rate was 5%. What was the amount of the retiree benefits paid bythe trustee?
The projected benefit obligation was $80 million at the beginning of the year and $85 million at the end of theyear. Service cost for the year was $10 million. At the end of the year, there was no prior service cost and a negligible net loss–AOCI. The actuary’s discount rate was 5%. What was the amount of the retiree benefits paid bythe trustee?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter19: Accounting For Post Retirement Benefits
Section: Chapter Questions
Problem 7RE
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The projected benefit obligation was $80 million at the beginning of the year and $85 million at the end of the
year. Service cost for the year was $10 million. At the end of the year, there was no prior service cost and a negligible net loss–AOCI. The actuary’s discount rate was 5%. What was the amount of the retiree benefits paid by
the trustee?
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