Zeff Manufacturing provides the following information about its postretirement health care plan for 20X1: Accumulated postretirement benefit

Question:

Zeff Manufacturing provides the following information about its postretirement health care plan for 20X1:

Accumulated postretirement benefit obligation on 1/1

$ 300,000

Fair value of plan assets on 1/1

30,000

Benefits paid to retirees at 12/31

6,500

Service cost

20,000

Recognized prior service cost

10,000

Recognized actuarial loss

7,000

Actual return on plan assets

4,500

Contributions to the plan at 12/31

12,000

Discount rate

8%

Expected long-run rate of return on plan assets

10%


Required:

1. Determine Zeff’s postretirement health care expense in 20X1.

2. Determine the fair value of plan assets at December 31, 20X1.

3. Determine the APBO amount at December 31, 20X1.

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Related Book For  book-img-for-question

Financial Reporting And Analysis

ISBN: 9781260247848

8th Edition

Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer

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