Belkin Co.provides medical care and insurance benefits to its retirees.In the current year,Belkin agrees to contribute 5% of the employees' $250,000 gross salaries to a retirement program.What is the amount of employee benefits expense for the current period?

Question

Quizplus · Accepted Answer

The 5% of employees' $250,000 gross salaries is $12,500. This represents the amount of expense that Belkin agreed to contribute to the retirement program. Therefore, the amount of employee benefits expense for the current period is $12,500.

Belkin CoProvides Medical Care and Insurance Benefits to Its Retirees