Accounting Final Review-1

Accounting Final Review-1 - ACCOUNTING FINAL REVIEW The...

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ACCOUNTING FINAL REVIEW The following data are for Guava Company’s retiree health care plan for the current calendar year. Number of employees covered 5 Years employed as of January 1 4 (each) Attribution period 20 years EPBO, January 1 $60,000 EPBO, December 31 $63,000 Interest rate 6% Funding and plan assets None 1. What is the interest cost to be included in the current year’s postretirement benefit expense? A. $3,600 B. $720 C. $768 D. $4,000 2. What is the service cost to be included in the current year’s postretiremnt benefit expense? 3. What is the correct entry to record postretirement benefit expense for the current year? APBO $3.900
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APBO $4,000 APBO $7,600 4. Prior service cost is included among OCI items in the statement f comprehensive income and thus subsequently becomes part of AOCI where it is amortized over the average remaining service period using. A. U.S. GAAP B. IFRS C. Both U.S. GAAP and IFRS D. Neither U.S GAAP nor IFRS 5. Prior service cost is expensed immediately using: 6. Recording the expense for postretirement benefits will not: A. Increase the APBO. B. Increase the postretirement benefit assets. C. Decrease the prior service cost. D. Increase the net loss-AOCI.
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Oregon Co.'s employees are eligible for retirement with benefits at the end of the year in which both age 60 is attained and they have completed 35 years of service. The benefits provide 15 years reimbursement for health care services of $20,000 annually, beginning one year from the date of retirement. Ralph Young was hired at the beginning of 1977 by Oregon after turning age 22 and is expected to retire at the end of 2015 (age 60). The discount rate is 4%. The plan is unfunded. The PV of an ordinary annuity of $1 where n = 15 and i = 4% is 11.11839. The PV of $1 where n = 2 and i = 4% is 0.92456 7. What is the present value of Ralph's net benefits as of his expected retirement date, rounded to the nearest dollar? 8. Assume the actuary estimates the net cost of providing health care benefits to a particular employee during his retirement years to have a present value of $60,000. If the benefits relate to an estimated 25 years of service and five of those years have been completed: The following partial information is taken from the comparative balance sheet of Levi Corporation.
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Shareholders’ equity 12/31/2013 12/31/2012 Common stock, $5 per value, 20 million shares authorized, 15 Million shares issued and 9 million $75 million $45 million Shares outstanding at 12/31/2013, And __ million shares issued and __ Shares outstanding at 12/31/2012.
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  • Fall '09
  • JONES
  • Accounting, Generally Accepted Accounting Principles, d., c.

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