South-western Federal Taxation 2018: Individual Income Taxes
41st Edition
ISBN: 9781337385886
Author: William H. Hoffman, James C. Young, William A. Raabe, David M. Maloney, Annette Nellen
Publisher: Cengage Learning
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Chapter 7, Problem 50P
To determine
Calculate Person N’s AGI for 2018.
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At December 31, 2020, Mallory, Inc. reported in its balance sheet a net loss of $12 million related to its postretirement benefit plan. The actuary for
Mallory at the end of 2021 increased her estimate of future health care costs. Mallory's entry to record the effect of this change will include:
Multiple Choice
A debit to APBO and a credit to Loss-OCI.
A debit to Postretirement benefit expense and a credit to APBO.
A debit to Loss-OCl and a credit to APBO.
A debit to Postretirement benefit expense and a credit to Loss-OCI.
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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%.
Required:
Determine the amount of the accumulated postretirement benefit obligation on December 31, 2024.
Note: Amounts to be deducted should be indicated with a minus sign.
Postretirement Benefit Obligation
January 1, 2024, balance in APBO
December 31, 2024, balance in APBO
$
0
Data pertaining to the postretirement health care benefit plan of Sterling Properties include the following for 2021:
Service cost
Accumulated postretirement benefit obligation, January 1
Plan assets (fair value), January 1
Prior service cost-AOCI
Net gain-AOCI (2021 amortization, $2)
Retiree benefits paid (end of year)
Contribution to health care benefit fund (end of year)
Discount rate, 8%
Return on plan assets (actual and expected), 10%
Required:
1. Determine the postretirement benefit expense for 2021.
2. Prepare the appropriate journal entries to record the (a) postretirement benefit expense, (b) funding, and (c) retiree benefits for 2021.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Determine the postretirement benefit expense for 2021. (Amounts to be deducted should be indicated with a minus sign.
Enter your answers in thousands.)
Postretirement benefit expense
($ in thousands)
$
($ in
thousands)
$ 136
700
30
none
100
88
200
Chapter 7 Solutions
South-western Federal Taxation 2018: Individual Income Taxes
Ch. 7 - Prob. 1DQCh. 7 - Prob. 2DQCh. 7 - Prob. 3DQCh. 7 - Prob. 4DQCh. 7 - Many years ago, Jack purchased 400shares of Canary...Ch. 7 - Scan is in the business of buying and selling...Ch. 7 - Prob. 7DQCh. 7 - Prob. 8DQCh. 7 - Prob. 9DQCh. 7 - Prob. 10DQ
Ch. 7 - Prob. 11DQCh. 7 - Prob. 12DQCh. 7 - Prob. 13DQCh. 7 - Prob. 14DQCh. 7 - Prob. 15DQCh. 7 - Prob. 16DQCh. 7 - Prob. 17DQCh. 7 - Prob. 18DQCh. 7 - Prob. 19DQCh. 7 - Prob. 20DQCh. 7 - Last year Aleshia identified 15,000 as a...Ch. 7 - Prob. 22CECh. 7 - Prob. 23CECh. 7 - Prob. 24CECh. 7 - Prob. 25CECh. 7 - Prob. 26CECh. 7 - Prob. 27CECh. 7 - Prob. 28CECh. 7 - Prob. 29CECh. 7 - Prob. 30CECh. 7 - Prob. 31CECh. 7 - Prob. 32PCh. 7 - Monty loaned his friend Ned 20,000 three years...Ch. 7 - Sally is in the business of purchasing accounts...Ch. 7 - Prob. 35PCh. 7 - Prob. 36PCh. 7 - Prob. 37PCh. 7 - Prob. 38PCh. 7 - Prob. 39PCh. 7 - Prob. 40PCh. 7 - Prob. 41PCh. 7 - Prob. 42PCh. 7 - Prob. 43PCh. 7 - Prob. 44PCh. 7 - Prob. 45PCh. 7 - Prob. 46PCh. 7 - Prob. 47PCh. 7 - Prob. 48PCh. 7 - Prob. 49PCh. 7 - Prob. 50PCh. 7 - Prob. 51PCh. 7 - Prob. 52PCh. 7 - Prob. 53CPCh. 7 - Prob. 54CPCh. 7 - Prob. 1RPCh. 7 - Prob. 2RP
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