Postretirement benefits; determine EPBO; attribution period
Response to the following problem:
Lorin Management Services has an unfunded postretirement benefit plan. On December 31, 2016, the following data were available concerning changes in the plan's accumulated postretirement benefit obligation with respect to one of Lorin's employees:
|
APBO at the beginning of 2016 $16,364
Interest cost: ($16,364 x 10%) 1,636
Service cost: ($44,000 1/22) 2,000
Portion of EPBO
attributed to 2016
APBO at the end of 2016 $20,000
|
Required:
1. Over how many years is the expected postretirement benefit obligation being expensed (attribution period)?
2. What is the expected postretirement benefit obligation at the end of 2016?
3. When was the employee hired by Lorin?
4. What is the expected postretirement benefit obligation at the beginning of 2016?