On January 1, 2018, Tom's Transport Company's accumulated post retirement benefit obligation was $37000000. At the end of 2018, retiree benefits paid were $4200000. Service cost for 2018 is $6700000. At the end of 2018, there was no service cost or net gain or loss. Assumptions regarding the trend of future healthcare costs were revised at the end of 2018. this revision cause the actuary to revised downward the estimate of the APBO by $570,000. the appropriate discount rate was 6%.
1. determine the amount of the accumulated
postretirement benefit obligation at December 31 2018
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On January 1, 2018, Tom's Transport Company's accumulated post retirement benefit obligation was $37000000....
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The interest (settlement) rate applicable to the plan is 10%. On
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are:
2017
2018
Service costs
$75,000
$85,000
Prior service costs amortization
0
12,000
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35,000
Benefits paid...
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Accumulated postretirement benefit obligation
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Fair value of plan assets
2,250,000
The interest (settlement) rate applicable to the plan is 10%. On
January 1, 2018, the company amends the plan so that prior service
costs of $175,000 are created. Other data related to the plan
are:
2017
2018
Service costs
$75,000
$85,000
Prior service costs amortization
0
12,000
Contributions (funding) to the plan
45,000
35,000
Benefits paid...
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