Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / Jones Company has a postretirement benefit (health care) plan for its employees

Jones Company has a postretirement benefit (health care) plan for its employees

Accounting

Jones Company has a postretirement benefit (health care) plan for its employees. On January 1, 2017, the balance in the Accumulated postretirement benefit obligation account was $300 million. The assumed discount rate—for purposes of determining postretirement obligations and expenses—is 8%. Jones does not prefund postretirement benefits, so there are no plan assets. It created a $45 million prior service cost credit at the end of 2016 when the company modified the health care plan to reduce the maximum benefits paid to each employee. This amount is being amortized over 15 years. The service cost component of postretirement benefits for 2017 is $35 million. 
Required: 
1. Determine the amount of postretirement benefits cost for 2017. 2. If benefits paid to retirees totaled $64 million in 2017, determine the balance in the Accumulated postretirement benefit obligation account on December 31, 2017. 
(For all requirements, enter your answers in millions of dollars and not in dollars (e.g. $3,000,000 should be entered as $3).) 
1. Net postretirement expense 
2. 
Accumulated postretirement benefit obligation 
 

Option 1

Low Cost Option
Download this past answer in few clicks

2.95 USD

PURCHASE SOLUTION

Already member?


Option 2

Custom new solution created by our subject matter experts

GET A QUOTE