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3 years ago

The interest cost component of NPPBC is the_______________.

Business

2 answers:

san4es73 [151]3 years ago

7 0

Answer: D

Explanation: Interest cost reflects the change in the APBO throughout the period which arise simply from a passage in time.

It is usually equal to the APBO at the start of the period times, the supposed discount rate which is used to regulate present value of future cash outflows currently expected or needed to satisfy the commitment or duty.

storchak [24]3 years ago

6 0

Answer:

b. increase in the APBO because of the passage of time.

Explanation:

NPPBC is an acronym for Net Periodic Post-retirement Benefit Cost.

The general rule is the prior service cost should be recognized in NPPBC: by assigning an equal amount of the retroactive benefits to each remain year of service from the plan amendment date to the full eligibility date of each active participant.

Hence, the interest cost component of NPPBC is the increase in the Accumulated Post-retirement Benefit Obligation (APBO) because of the passage of time

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Celine Dion Company issued $600,000 of 10%, 20-year bonds on January 1, 2020, at 102. Interest is payable semiannually on July 1

anzhelika [568]

Answer:

The Journal entries are as follows:

(a) On January 1, 2020

Cash A/c(6,000 bonds × $102) Dr. $612,000

To Bonds payable $600,000

To premium on bonds payable $12,000

(To record the issuance of the bonds)

Workings:

premium on bonds payable = $612,000 - $600,000

= $12,000

(b) On July 1, 2020

Interest expense A/c Dr. $29,700

Premium on bonds payable A/c Dr. $300

To cash A/c $30,000

(To record the interest expense)

Workings:

Cash = $600,000 × (6/12) × 10%

= $30,000

Premium on bonds payable = $12,000 ÷ 40 periods

= $300

Interest expense A/c Dr. $29,700

Premium on bonds payable A/c Dr. $300

To Interest payable A/c $30,000

(To record the accrual of interest expense)

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3 years ago

McConnell Corporation has bonds on the market with 18 years to maturity, a YTM of 9.8 percent, a par value of $1,000, and a curr

djyliett [7]

Answer:

13.70%

Explanation:

We use the PMT formula which is to be shown in the attachment

Given that,

Present value = $1,326.50

Future value = $1,000

Rate of interest = 9.8% ÷ 2 = 4.9%

NPER = 18 years × 2 = 36 years

The formula is shown below:

= PMT(Rate;NPER;-PV;FV;type)

The present value come in negative

So, after solving this, the PMT is

= $68.48 × 2

= $136.92

Now the coupon rate is

= $136.92 ÷ $1,000

= 13.70%

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4 years ago

True or False? It is not necessary to document patient medications prescribed by other physicians.

MaRussiya [10]

The answer is false.

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3 years ago

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In determining the dollar amount to use for operating assets in the return on investment (ROI) calculation, companies will gener

Irina-Kira [14]

Answer:

Option A is correct

Explanation:

Companies often use net book value or gross cost of the asset because<u> It is consistent with how assets are reported on the balance sheet</u>

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4 years ago

Common approaches to pricing are oriented around which four elements?

OLEGan [10]

Profit, Competition, Cost and Demand are the element which the approaches for pricing fixing are oriented around.

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3 years ago