# 17-2 - of the year PBO \$80 Service cost 10 Interest cost 4...

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BRIEF EXERCISES Brief Exercise 17-1 (\$ in millions) Beginning of the year PBO \$80 Service cost 10 Interest cost 4 (5% x \$80) Loss (gain) on PBO 0 Less: Retiree benefits (6 ) End of the year PBO \$88 Brief Exercise 17-2 (\$ in millions) Beginning of the year PBO \$80 Service cost ? Interest cost 4 (5% x \$80) Loss (gain) on PBO 0 Less: Retiree benefits (6 ) End of the year PBO \$85 Service cost = \$85 – 80 – 4 + 6 = \$7 million Brief Exercise 17-3 (\$ in millions) Beginning of the year PBO \$80 Service cost 10 Interest cost 4 (5% x \$80) Loss (gain) on PBO 0 Less: Retiree benefits ( ? ) End of the year PBO \$85 Retiree benefits = \$85 – 80 – 4 – 10 = \$9 million

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Brief Exercise 17-4 (\$ in millions) Beginning
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Unformatted text preview: of the year PBO \$80 Service cost 10 Interest cost 4 (5% x \$80) Loss (gain) on PBO ? Less: Retiree benefits (6 ) End of the year PBO \$85 Gain = \$85 – 80 – 10 – 4 + 6 = \$3 million Brief Exercise 17-5 (\$ in millions) Plan assets Beginning of the year \$80 Actual return 4 (5% x \$80) Cash contributions 7 Less: Retiree benefits (6 ) End of the year \$85 Brief Exercise 17-6 (\$ in millions) Plan assets Beginning of the year \$80 Actual return 4 (5% x \$80) Cash contributions 7 Less: Retiree benefits ( ? ) End of the year \$83 Retiree benefits = \$83 – 80 – 4 – 7 = \$8 million...
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## This note was uploaded on 03/20/2012 for the course ACCT 201 taught by Professor Inga during the Spring '12 term at VCU.

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17-2 - of the year PBO \$80 Service cost 10 Interest cost 4...

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