B is corrent. To determine the accrued postretirement benefit cost, the net periodicpostretirement benefit cost must first be calculated as follows:| Service cost | 28,000 | | Interest on the accumulated postretirement benefit obligation | 5,000 | | Amortization of the unrecognized transition obligation | 8,000 | | Net periodic postretirement benefit cost | $41,000 |
An adjusting entry is required at year-end to record net periodic postretirement benefit cost and the cash benefit payments made to employees. An accrued postretirement benefit cost will be recorded if the net postretirement benefit cost exceeds the cash payments to employees. The journal entry would be| Postretirement benefit cost | 41,000 | | | Cash | | 10,000 | | Accrued postretirement benefit cost | | 31,000 |
Therefore, the balance in the accrued postretirement benefit cost account would be $31,000.A is incorrect. To determine the accrued postretirement benefit cost, the net periodicpostretirement benefit cost must first be calculated as follows:| Service cost | 28,000 | | Interest on the accumulated postretirement benefit obligation | 5,000 | | Amortization of the unrecognized transition obligation | 8,000 | | Net periodic postretirement benefit cost | $41,000 |
An adjusting entry is required at year-end to record net periodic postretirement benefit cost and the cash benefit payments made to employees. An accrued postretirement benefit cost will be recorded if the net postretirement benefit cost exceeds the cash payments to employees. The journal entry would be| Postretirement benefit cost | 41,000 | | | Cash | | 10,000 | | Accrued postretirement benefit cost | | 31,000 |
Therefore, the balance in the accrued postretirement benefit cost account would be $31,000.C is incorrect. To determine the accrued postretirement benefit cost, the net periodicpostretirement benefit cost must first be calculated as follows:| Service cost | 28,000 | | Interest on the accumulated postretirement benefit obligation | 5,000 | | Amortization of the unrecognized transition obligation | 8,000 | | Net periodic postretirement benefit cost | $41,000 |
An adjusting entry is required at year-end to record net periodic postretirement benefit cost and the cash benefit payments made to employees. An accrued postretirement benefit cost will be recorded if the net postretirement benefit cost exceeds the cash payments to employees. The journal entry would be| Postretirement benefit cost | 41,000 | | | Cash | | 10,000 | | Accrued postretirement benefit cost | | 31,000 |
Therefore, the balance in the accrued postretirement benefit cost account would be $31,000.D is incorrect. To determine the accrued postretirement benefit cost, the net periodicpostretirement benefit cost must first be calculated as follows:| Service cost | 28,000 | | Interest on the accumulated postretirement benefit obligation | 5,000 | | Amortization of the unrecognized transition obligation | 8,000 | | Net periodic postretirement benefit cost | $41,000 |
An adjusting entry is required at year-end to record net periodic postretirement benefit cost and the cash benefit payments made to employees. An accrued postretirement benefit cost will be recorded if the net postretirement benefit cost exceeds the cash payments to employees. The journal entry would be| Postretirement benefit cost | 41,000 | | | Cash | | 10,000 | | Accrued postretirement benefit cost | | 31,000 |
Therefore, the balance in the accrued postretirement benefit cost account would be $31,000. |
