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.
Question 10