Libby_7e_MBA_Companion_Solutions

Prepare the journal entry to record disneys other

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Unformatted text preview: sney’s “other postretirement benefit expense” for 2009. Disney’s postretirement medical plans (in millions) Year Ended December 31, 2009 2008 2007 $17 $22 $22 71 63 59 (36) (26) (22) 2 2 $52 $61 $61 Service cost Interest cost Expected return on plan assets Other Total other postretirement expense ANSWER Other postretirement benefit expense (+E, –SE) 52m Cash (–A) Assets 52m = Liabilities + Cash –52m LO 1 LO 3 Stockholders’ Equity Other postretirement benefit expense (+E) –52m PROBLEMS S P-1 Converting operating leases to capital leases Apple Corporation discloses the following information about its noncancelable operating leases in its 2009 annual report. (in millions) 2010 2011 2012 2013 2014 Thereafter Total minimum lease payments $222 234 228 214 199 825 $1,922 Assume that the payment amount in the “thereafter” row is all due at the end of 2015 and that the appropriate discount rate is 6 percent. What is the present value of Apple’s “’total minimum lease payments” at the end of fiscal 2009? Page 9...
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