Federal Delivery Service began a defined-benefit pension plan for its employees on January 1, 2013. Pertinent data are:
Projected benefit obligation, Dec. 31, 2013 $157,000
Accumulated benefit obligation, Dec. 31, 2013 148,000
Plan assets at fair value, Dec. 31, 2013 131,000
Pension expense for 2013 143,000
Employer's cash contribution, end of 2013 131,000
Question 1: What amount should Federal report in the balance sheet at December 31, 2013?
2nd problem
Shelby Farm has a plan under which retired employees receive medical benefits. On January 1, 2013, Shelby Farm's accumulated postretirement benefit obligation for this plan was $225 million. Retiree benefits of $27 million were paid at the end of 2013. The service cost for 2013 is $63 million.
Health care costs rose less than expected in 2013, causing the actuary to revise downward the estimate of the APBO by $6 million. The actuary's discount rate is 8%, and there was no prior service cost and an insignificant net loss-AOCI at the end of 2013.
Question 2: What is Shelby's accumulated postretirement benefit obligation at December 31, 2013?