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Graf Corp.' s 2005 income statement showed pretax accounting income of $ 200,000. To compute the federal income tax liability, the following 2005 data are provided: If the alternate minimum tax provisions are ignored, what amount of current federal income tax liability should be included in Graf ' s December 31, 2005 balance sheet?
Question 8
The following information relates to a postretirement benefit plan( in millions): APBO beginning, $ 300Plan assets beginning, $ 100Net postretirement benefit gain, beginning, $ 20Amortization of net gain or loss is based on SL method, 10 year average remaining service periodPrior service cost, initial amount, recognized four years ago, $ 50Amortization of prior service cost is based on SL method, 10 year average remaining service periodService cost, $ 40Discount rate, 5 % Expected rate of return, 6 % Actual return, $ 10Change in estimated life expectancy caused a gain of $ 16, year-endFunding contribution, $ 20. What amount of net gain is subject to amortization next year?
Question 9
Information about a postretirement benefit plan at the beginning of the current year is as follows( in millions). EPBO, $ 400Discount rate, 5 % Average years of service rendered toward full eligibility, 12Average years of service required to reach full eligibility, 20Plan assets, $ 120Expected and actual return, 10 %. Compute the reported postretirement benefit liability at year-end.