Gorky-Park Corporation provides postretirement health care benefits to employees who provide at least 14 years of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Gorky-Park Corporation provides postretirement health care benefits to employees who provide at least 14 years of service and reach age 64 while in service. On January 1, 2024, the following plan-related data were available: Accumulated postretirement benefit obligation Fair value of plan assets Average remaining service period to retirement Average remaining service period to full eligibility ($ in millions) $ 135 None 25 years (same in previous 10 years) 20 years (same in previous 10 years) On January 1, 2024, Gorky-Park amends the plan to provide certain dental benefits in addition to previously provided medical benefits. The actuary determines that the cost of making the amendment retroactive increases the APBO by $40 million. Management chooses to amortize the prior service cost on a straight-line basis. The service cost for 2024 is $39 million. The interest rate is 8%. Required: 1. Calculate the postretirement benefit expense for 2024. 2. Prepare the journal entry to record the expense. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the postretirement benefit expense for 2024. Note: Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). Service cost Interest cost Return on plan assets Amortization of prior service cost Postretirement benefit expense ($ in millions) $ 0.0 Gorky-Park Corporation provides postretirement health care benefits to employees who provide at least 14 years of service and reach age 64 while in service. On January 1, 2024, the following plan-related data were available: Accumulated postretirement benefit obligation Fair value of plan assets Average remaining service period to retirement Average remaining service period to full eligibility ($ in millions) $ 135 None 25 years (same in previous 10 years) 20 years (same in previous 10 years) On January 1, 2024, Gorky-Park amends the plan to provide certain dental benefits in addition to previously provided medical benefits. The actuary determines that the cost of making the amendment retroactive increases the APBO by $40 million. Management chooses to amortize the prior service cost on a straight-line basis. The service cost for 2024 is $39 million. The interest rate is 8%. Required: 1. Calculate the postretirement benefit expense for 2024. 2. Prepare the journal entry to record the expense. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the postretirement benefit expense for 2024. Note: Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). Service cost Interest cost Return on plan assets Amortization of prior service cost Postretirement benefit expense ($ in millions) $ 0.0
Expert Answer:
Related Book For
Posted Date:
Students also viewed these accounting questions
-
1. Mimi, Inc. leased an equipment from Lessor Company with the following information: Present value of annual rental: 3,170,000 Present value of guaranteed residual value: 340,000 Initial direct...
-
Gorky-Park Corporation provides postretirement health care benefits to employees who provide at least 12 years of service and reach age 62 while in service. On January 1, 2024, the following...
-
Gorky-Park Corporation provides postretirement health care benefits to employees who provide at least 12 years of service and reach age 62 while in service. On January 1, 2021, the following...
-
Jack Hammer invests in a stock that will pay dividends of $2.00 at the end of the first year; $2.20 at the end of the second year; and $2.40 at the end of the third year. Also, he believes that at...
-
Over the past 50 years, one-half of all cities that apply have received mass transportation grants from the federal government. In the last round of grants, eight southern cities applied but none...
-
Write a paragraph to explain why unearned revenues are liabilities rather than revenues. In your explanation, use the following actual example: Maclean's magazine collects cash from subscribers in...
-
Donny Blake is an accountant for Swenson Company. Early this year Donny made a highly favorable projection of sales and profits over the next 3 years for Swen- son's hot-selling computer PLEX. As a...
-
The Houston Corporation acquires machinery from the South Company in exchange for a $20,000 non-interest-bearing, five-year note on June 30, 2006. The note is due on June 30, 2011. The machinery has...
-
7. 1 cc = _mL 8. 1 oz = _ _mL 9. 1 teaspoon = 10.1 tablespoon = mL -15 mL 5n
-
Case 1: 1-Winston Tremblay, engineer and expert programmer, is very concerned about his next personal income tax return for the 2023 tax year. He is providing you with the following information so...
-
A diamond mine is expected to yield an annual income of $110000 for the next 14 years, after which it will be sold for $2750. An investor wants an annual return on his investment of 6%. If he can...
-
Question 3 The price of an equity is RM5. Call and put options are available for this equity. The maturity of the options is at time Y. The stock price will change 3 times until maturity. The chance...
-
Sheridan Limited is a Niagara-on-the-Lake, Ontario-based winery producing blended, premium, and ultra-premium wines, which are sold globally. The company has a strong distribution network in Canada...
-
S dx Evaluate ( +1) x(x+1)
-
Issue(s): Whether a person whose property is taken without compensation may seek redress under the self-executing takings clause of the Fifth Amendment even if the legislature has not affirmatively...
-
Suppose your lab partner has a height L = 173 cm and a weight w = 719 N. You can determine the position of his centre of gravity by having him stretch out on a uniform board supported at one end by a...
-
Please select the Financial Statement that matches the account name. _1 Service Revenue 3 Land _3 Rent Expense 5 Accounts Payable _2 Accounts Receivable __2__ Dividends 1. Balance Sheet only 2....
-
Presented below are income statements prepared on a LIFO and FIFO basis for Kenseth Company, which started operations on January 1, 2024. The company presently uses the LIFO method of pricing its...
-
Baer Inc. has been manufacturing its own shades for its table lamps. The company is currently operating at 100% of capacity, and variable manufacturing overhead is charged to production at the rate...
-
Florescent Minerals processes materials extracted bom mines. The most common raw material that it processes results in three joint products: Sarco, Barco, and Larco. Each of these products can be...
-
Michelle Tracy, a recent graduate of Rolling's accounting program, evaluated the operating performance of Poway Company's six divisions. Michelle made the following presentation to Povvay's Board of...
Study smarter with the SolutionInn App