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il63 [147K]
3 years ago
9

The EPBO for a particular employee on January 1, 2021, was $150,000. The APBO at the beginning of the year was $30,000. The appr

opriate discount rate for this postretirement plan is 5%. The employee is expected to serve the company for a total of 25 years with 5 of those years already served as of January 1, 2021. What is the APBO at December 31, 2021?
Business
1 answer:
melomori [17]3 years ago
5 0

Answer:

The APBO at December 31, 2021 is $37,800.

Explanation:

In order to calculate the ABPO at December 31, 2021 we have to use the following formula:

ABPO= EBPO as on December 31, 2021 × ratio period served over aquired

       = ($150,000 × 1.05) × <u>6 years</u>

                                           25 years

       = $157,500× <u>6 years</u>

                           25 years

      = $37,800.

The APBO at December 31, 2021 is $37,800.

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Can a broker arbitrarily penalize an independent contractor based on varying factors, such as the sales agent's difficulty in cl
Irina18 [472]

Answer:

No

Explanation:

An independent contractor is a business person or entity who works for an employer based on an agreed-upon contract which affords him the flexibility of choosing how and when he accomplishes a task. The employer has the right to control the results of his work but has little or no say on how and when the job is done.

An independent contractor is not bound to work specific hours dictated by an employer. When the sale's agent finds it difficult to close a deal or is unable to produce paperwork in a timely fashion, he cannot just be arbitrarily penalized by the broker. The broker could terminate the contract if the agent does not meet up to his requirements.

8 0
2 years ago
ABC Company leased equipment to Best Corporation under a lease agreement that qualifies as a finance lease. The cost of the asse
alexandr402 [8]

$12120 is the annual amortization expense

<u>Explanation:</u>

The following formula is used to calculate the annual depreciation expense that will be recorded in the books of accounts

Depreciation = ( cost of the asset minus salvage value) divide by number of years.

Given data in the question: number of years = 10, cost of the asset = $124000, salvage value = $28000

Putting the figures in the formula,

Depreciation expense = ($124000 minus $28000) divide by 10

After solving, we get = $12120

Thus, annual depreciation expense = $12120

7 0
3 years ago
Select the correct answer from the drop-down menu.
irina [24]

One can display good customer service by having a professional appearance while attending to customers.

<h3>What is customer service?</h3>

Customer service is a process of ensuring that customers are well catered for when delivering services to them.

Characteristics of a good customer service are:

  • Promptness
  • Politeness
  • Professionalism

Hence, one can display good customer service by having a professional appearance while attending to customers.

Learn more about customer service here : brainly.com/question/1286522

#SPJ1

8 0
2 years ago
The following information is taken from the records of Erie Corp.(in thousands) for the year ended on December 31: 2019 2018 Sal
den301095 [7]

Answer:

<u>Favourable Changes:</u>

Sales

Gross Profit

Operating Income

Interest Expense

Net Income

<u>Unfavourable Changes:</u>

Cost Of Sales  

Selling Expenses  

General Expenses

Other Revenue

Income Taxes

Explanation:

Observe Movement from 2018 results to 2019 results

                                        Erie Corp

                   Vertical Analysis of Income Statement

                                                                2019                    2018

Sales                                                        1,397                    1,122

Less Cost Of Sales                                   935                      814

Gross Profit                                               462                      308

<u>Less Operating Expenses</u>

Selling Expenses                                      154                       121

General Expenses                                     88                        77

Operating Income                                   220                       110

<u>Less Non- Operating Expenses</u>

Other Revenue                                            4                          7

Interest Expense                                         2                          9

Income Taxes                                           134                        66

Net Income                                                88                        42

8 0
2 years ago
Cincinnati Exporters wants to raise $40 million to expand its business. To accomplish this, it plans to sell 22-year, $1,000 fac
IrinaVladis [17]

Answer:

Minimum number of units to be issued = 45,791.4 units

Explanation:

The units of the bonds to be sold to raise the money equals to the price of the bonds divided by the sum to be raised

The price of a bond is the present value (PV) of the future cash inflows expected from the bond discounted using the yield to maturity.

These cash flows include interest payment and redemption value

The price of the bond can be calculated as follows:

Step 1

PV of interest payment

Semi-annual coupon rate = 5.72/2 = 2.86 %

Semi-annual Interest payment =( 2.86 %×$1000)= $28.6

Semi annual yield = 6.85%/2 = 3.42%

PV of interest payment  

= A ×(1- (1+r)^(-n))/r

A- interest payment, r- yield -3.42%, n- no of periods- 2 × 22 = 44 periods

= 28.6× (1-(1.0342)^(-44)/0.0342)= 645.82

 

Step 2  

PV of redemption value (RV)

PV = RV × (1+r)^(-n)

RV - redemption value- $1000, n- 7, r- 4.5%  

= 1,000 × (1+0.0342)^(-2×22)

= 1000 × 1.0342^(-44)= 227.7

Step 3

Price of bond = PV of interest payment + PV of RV

645.82 + 227.7= 873.525

Minimum number of units to be issued = $40 million/873.5= 45,791.4 units

 

Minimum number of units to be issued = 45,791.4 units

7 0
2 years ago
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