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Chapter 20: BE20-11 (page 1162)

Manno Corporation has the following information available concerning its postretirement benefit plan for 2017. Service cost $40,000 Interest cost 47,400 Actual and expected return on plan assets 26,900 Compute Manno’s 2017 postretirement expense.

Short Answer

Expert verified

Postretirement expense is the type of expenditure an individual incurs after the person has reached their retirement ageand is not obliged to work in any organization further.

Step by step solution

01

Step 1: Given the following amounts:

Particulars

Amount

Service cost

$40,000

Interest cost

$47,400

Actual and expected return on plan assets

$26,900

02

Step 2:Computation of Manno’s 2017 postretirement expense.

Particulars

Amount

Service cost

$40,000

Add: Interest cost

$47,400

Less: Expected return on plan assets

$26,900

Postretirement Expense 2017

$60,500

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Most popular questions from this chapter

What is meant by “prior service cost”? When is prior service cost recognized as pension expense?

The accounting staff of Usher Inc. has prepared the following pension worksheet. Unfortunately, several entries in the worksheet are not decipherable. The company has asked your assistance in completing the worksheet and completing the accounting tasks related to the pension plan for 2017.

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