The following facts relate to the Gamble Co. postretirement benefits plan for 2015: $$\begin{array} { l r }
\text { Service cost } & \$ 136,000 \
\text { Discount rate } & 10 \% \
\text { EPBO, January 1, 2015 } & \$ 1,095,000 \
\text { APBO, January 1, 2015 } & \$ 900,000 \
\text { Actual return on plan assets in 2015 } & \$ 31,500 \
\text { Expected return on plan assets in 2015 } & \$ 24,000
\end{array}$$ The amount of postretirement expense for 2015 is

Question

The following facts relate to the Gamble Co. postretirement benefits plan for 2015: $$\begin{array} { l r } 
\text { Service cost } & \$ 136,000 \
\text { Discount rate } & 10 \% \
\text { EPBO, January 1, 2015 } & \$ 1,095,000 \
\text { APBO, January 1, 2015 } & \$ 900,000 \
\text { Actual return on plan assets in 2015 } & \$ 31,500 \
\text { Expected return on plan assets in 2015 } & \$ 24,000
\end{array}$$ The amount of postretirement expense for 2015 is

Quizplus · Accepted Answer

The postretirement expense is calculated as: Service cost ($136,000) + Interest cost (10% of APBO, $90,000) - Expected return on plan assets ($24,000) = $202,000.

The Following Facts Relate to the Gamble Co The Amount of Postretirement Expense for 2015 Is A) $194,500

The Following Facts Relate to the Gamble Co The Amount of Postretirement Expense for 2015 Is
A) $194,500