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Question(s) / Instruction(s):

*Ex. 20-88—Computing postretirement expense and APBO.
The following information is related to the postretirement benefits plan of Gordon, Inc. for 2004:

Service cost

$ 210,000

 

Discount rate

8%

 

APBO, January 1, 2004

1,600,000

 

EPBO, January 1, 2004

1,800,000

 

Actual return on plan assets in 2004

78,000

 

Expected return on plan assets in 2004

71,600

 

Amortization of unrecognized transition amount

80,400

 

Amortization of unrecognized net gain

5,400

 

Contributions (funding)

300,000

 

Benefit payments

156,000

Instructions
(a)     Compute the amount of postretirement expense for 2004. (Show computations.)
(b)     Compute the amount of the APBO at December 31, 2004.

*Ex. 20-88—Computing postretirement expense and APBO.
The following information is related to the postretirement benefits plan of Gordon, Inc. for 2004:

Service cost

$ 210,000

 

Discount rate

8%

 

APBO, January 1, 2004

1,600,000

 

EPBO, January 1, 2004

1,800,000

 

Actual return on plan assets in 2004

78,000

 

Expected return on plan assets in 2004

71,600

 

Amortization of unrecognized transition amount

80,400

 

Amortization of unrecognized net gain

5,400

 

Contributions (funding)

300,000

 

Benefit payments

156,000

Instructions
(a)     Compute the amount of postretirement expense for 2004. (Show computations.)
(b)     Compute the amount of the APBO at December 31, 2004.

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