Question

Sandhill Co. provides the following information about its postretirement benefit plan for the year 2020. Service cost $ 43,200 Contribution to the plan 9,100 Actual and expected return on plan assets 10,900 Benefits paid 19,100 Plan assets at January 1, 2020 101,400 Accumulated postretirement benefit obligation at January 1, 2020 321,800 Discount rate 8 % Compute the postretirement benefit expense for 2020.

Answer 1

The correct answer is "58,044".

Step-by-step explanation:

The given values are:

Service cost,

= $43,200

Accumulated postretirement benefit obligation,

= 321,800

Actual and expected return,

= 10,900

Discount rate,

= 8%

The interest cost will be:

=
`321,800* 8 \ percent`

=
`25,744`

The Postretirement benefit expense will be:

=
`Service \ cost +Interest \ cost-Actual \ and \ expected \ return`

=
`43,200+25,744-10,900`

=
`58,044`