Other postretirement benefits : The postretirement benefits which are provided by employers, other than pensions, like medical insurance, life insurance, and legal services, and healthcare benefits, are referred to as other postretirement benefits. The following are the ways to measure other postretirement benefits: Expected postretirement benefit obligation (EPBO): This is the present value of future retirement benefits, which is estimated to be received by the participants. Accumulated postretirement benefit obligation (APBO): This is the portion of EPBO recognized by the employee till date. To mention : The number of years over which EPBO is expensed.

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Answer 1

Question

Chapter 17, Problem 17.26E

(1)

To determine

Other postretirement benefits: The postretirement benefits which are provided by employers, other than pensions, like medical insurance, life insurance, and legal services, and healthcare benefits, are referred to as other postretirement benefits.

The following are the ways to measure other postretirement benefits:

Expected postretirement benefit obligation (EPBO): This is the present value of future retirement benefits, which is estimated to be received by the participants.

Accumulated postretirement benefit obligation (APBO): This is the portion of EPBO recognized by the employee till date.

To mention: The number of years over which EPBO is expensed.

(2)

To determine

EPBO at the end of 2018

(3)

To determine

To indicate: The year in which the employee was hired by LM Services

(4)

To determine

EPBO at the beginning of 2018

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NOTE 17: EMPLOYEE BENEFIT PLANS (in part) ($ in millions) Changes in projected benefit obligation: Obligation at beginning of period Service cost Interest cost Pension Benefits 2020 2019 $ 648 1 $ 637 1 31 34 Actuarial (gain) loss Benefits paid Obligation at end of period Change in plan assets: 54 37 (50) (50) $ 684 $ 659 Fair value of plan assets at beginning of period Actual return (loss) on plan assets* $ 496 $ 431 70 52 Employer contribution 24 74 Benefits paid (50) (50) Fair value of plan assets at end of period 540 507 Net liability recognized at end of period $ (144) $ (152) *Expected return $30 and $29 in 2020 and 2019, respectively Required: 1. What amount did Maur report in its balance sheet related to the pension plan at June 30, 2020? 2. When calculating pension expense at June 30, Maur included $10 million in its income statement as the amortization of unrecognized net actuarial loss (net loss-AOCI). This AOCI account had a balance of $350 million at the beginning of the…

Exercise 17-10 (Algo) Determine pension expense [LO17-6, 17-7] Abbott and Abbott has a noncontributory, defined benefit pension plan. At December 31, 2021, Abbott and Abbott received the following information: Projected Benefit Obligation Balance, January 1 Service cost ($ in millions) $125 22 Interest cost 15 Benefits paid (8) Balance, December 31 $154 Plan Assets Balance, January 1 Actual return on plan assets $75 10 Contributions 2021 22 Benefits paid |(8) Balance, December 31 $99 The expected long-term rate of return on plan assets was 12%. There was no prior service cost and a negligible net loss-AOCI on January 1, 2021. Required: 1. Determine Abbott and Abbott's pension expense for 2021. 2 Prenare the iournal entries to record Abbott ancd Abbott's a) pension expense (6) fundina and (c) pavment for 2021

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Answer 2

Question

Chapter 17, Problem 17.26E

(1)

To determine

Other postretirement benefits: The postretirement benefits which are provided by employers, other than pensions, like medical insurance, life insurance, and legal services, and healthcare benefits, are referred to as other postretirement benefits.

The following are the ways to measure other postretirement benefits:

Expected postretirement benefit obligation (EPBO): This is the present value of future retirement benefits, which is estimated to be received by the participants.

Accumulated postretirement benefit obligation (APBO): This is the portion of EPBO recognized by the employee till date.

To mention: The number of years over which EPBO is expensed.

(2)

To determine

EPBO at the end of 2018

(3)

To determine

To indicate: The year in which the employee was hired by LM Services

(4)

To determine

EPBO at the beginning of 2018

Expert Solution & Answer

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Answer 3

Question

Chapter 17, Problem 17.26E

(1)

To determine

Other postretirement benefits: The postretirement benefits which are provided by employers, other than pensions, like medical insurance, life insurance, and legal services, and healthcare benefits, are referred to as other postretirement benefits.

The following are the ways to measure other postretirement benefits:

Expected postretirement benefit obligation (EPBO): This is the present value of future retirement benefits, which is estimated to be received by the participants.

Accumulated postretirement benefit obligation (APBO): This is the portion of EPBO recognized by the employee till date.

To mention: The number of years over which EPBO is expensed.

(2)

To determine

EPBO at the end of 2018

(3)

To determine

To indicate: The year in which the employee was hired by LM Services

(4)

To determine

EPBO at the beginning of 2018

Expert Solution & Answer

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Answer 4

Question

Chapter 17, Problem 17.26E

(1)

To determine

Other postretirement benefits: The postretirement benefits which are provided by employers, other than pensions, like medical insurance, life insurance, and legal services, and healthcare benefits, are referred to as other postretirement benefits.

The following are the ways to measure other postretirement benefits:

Expected postretirement benefit obligation (EPBO): This is the present value of future retirement benefits, which is estimated to be received by the participants.

Accumulated postretirement benefit obligation (APBO): This is the portion of EPBO recognized by the employee till date.

To mention: The number of years over which EPBO is expensed.

(2)

To determine

EPBO at the end of 2018

(3)

To determine

To indicate: The year in which the employee was hired by LM Services

(4)

To determine

EPBO at the beginning of 2018

Expert Solution & Answer

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Answer 5

Chapter 17, Problem 17.26E

(1)

To determine

Other postretirement benefits: The postretirement benefits which are provided by employers, other than pensions, like medical insurance, life insurance, and legal services, and healthcare benefits, are referred to as other postretirement benefits.

The following are the ways to measure other postretirement benefits:

Expected postretirement benefit obligation (EPBO): This is the present value of future retirement benefits, which is estimated to be received by the participants.

Accumulated postretirement benefit obligation (APBO): This is the portion of EPBO recognized by the employee till date.

To mention: The number of years over which EPBO is expensed.

(2)

To determine

EPBO at the end of 2018

(3)

To determine

To indicate: The year in which the employee was hired by LM Services

(4)

To determine

EPBO at the beginning of 2018

Answer 6

Chapter 17, Problem 17.26E

(1)

To determine

Other postretirement benefits: The postretirement benefits which are provided by employers, other than pensions, like medical insurance, life insurance, and legal services, and healthcare benefits, are referred to as other postretirement benefits.

The following are the ways to measure other postretirement benefits:

Expected postretirement benefit obligation (EPBO): This is the present value of future retirement benefits, which is estimated to be received by the participants.

Accumulated postretirement benefit obligation (APBO): This is the portion of EPBO recognized by the employee till date.

To mention: The number of years over which EPBO is expensed.

Answer 7

Chapter 17, Problem 17.26E

(1)

To determine

Other postretirement benefits: The postretirement benefits which are provided by employers, other than pensions, like medical insurance, life insurance, and legal services, and healthcare benefits, are referred to as other postretirement benefits.

The following are the ways to measure other postretirement benefits:

Expected postretirement benefit obligation (EPBO): This is the present value of future retirement benefits, which is estimated to be received by the participants.

Accumulated postretirement benefit obligation (APBO): This is the portion of EPBO recognized by the employee till date.

To mention: The number of years over which EPBO is expensed.

Answer 8

(2)

To determine

EPBO at the end of 2018

Answer 9

(2)

To determine

EPBO at the end of 2018

Answer 10

(3)

To determine

To indicate: The year in which the employee was hired by LM Services

Answer 11

(3)

To determine

To indicate: The year in which the employee was hired by LM Services

Answer 12

(4)

To determine

EPBO at the beginning of 2018

Answer 13

(4)

To determine

EPBO at the beginning of 2018

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

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Answer 17

Ch. 17 - Prob. 17.1Q Ch. 17 - Prob. 17.2Q Ch. 17 - Prob. 17.3Q Ch. 17 - What is the vested benefit obligation?Ch. 17 - Prob. 17.5Q Ch. 17 - Prob. 17.6Q Ch. 17 - Name three events that might change the balance of...Ch. 17 - Prob. 17.8Q Ch. 17 - Prob. 17.9Q Ch. 17 - Prob. 17.10Q

Solution Summary: The author explains that other postretirement benefits are provided by employers, other than pensions, like medical, life insurance, and legal services.

Concept explainers

EPBO at the end of 2018

To indicate: The year in which the employee was hired by LM Services

EPBO at the beginning of 2018

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Chapter 17 Solutions