What is the interest cost to be included

Assignment Help Accounting Basics
Reference no: EM132888055

Question - Oregon Co.'s employees are eligible for retirement with benefits at the end of the year in which both age 60 is attained and they have completed 35 years of service. The benefits provide 15 years' reimbursement for health care services of $35,000 annually, beginning one year from the date of retirement.

Ralph Young was hired at the beginning of 2000 by Oregon after turning age 22 and is expected to retire at the end of 2038 (age 60). The discount rate is 5%. The plan is unfunded.

The PV of an ordinary annuity of $1 where n = 15 and i = 5% is 10.37966.

The PV of $1 where n = 2 and i = 5% is 0.90703.

With respect to Ralph, what is the interest cost to be included in Oregon's 2037 postretirement benefit expense, rounded to the nearest dollar?

Reference no: EM132888055

Questions Cloud

What is the income to the NC Interest : On 3/1/25, Big Co sells the land to a thirds party for $80,000 Little Co reports earnings of $50,000 each year. What is the income to the NC Interest
Distinct process in a democratic society : Collective bargaining is a distinct process in a democratic society.
Contrast the various employment classifications : Compare and contrast the various employment classifications (non-exempt, exempt, independent contractor) and how union representation affects each category.
Determine firm profit-maximizing output : A manufacturer produces and sells a product with an inverse demand curve given by:P = 800-2Q
What is the interest cost to be included : With respect to Ralph, what is the interest cost to be included in Oregon's 2037 postretirement benefit expense, rounded to the nearest dollar
Implement transformational change : How did T-Mobile's CEO unfreeze the company to implement transformational change?
Effect of the professor new method : A University professor who was tired of student complaints about how project teams were put together developed a new method for composing student teams. The met
What is the cost of production report using FIFO method : Ending Work in Process Inventory (75% as to conversion) 30,000 Units. What is the cost of production report using FIFO method
Potential efforts to unionize warehouse employees : As the HR manager, you have heard rumors about potential efforts to unionize your warehouse employees. Use the employment law information Network (www.elinfonet

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd