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1.The amount of money Delta has set aside to fund its postretirement benefits is much less than the amount of money Delta has set aside to fund its pension benefits. This is pretty typical. What are the two reasons that explain why companies generally fund their postretirement benefit plans less than their pension plans?

 

 

 

 

2. Re-estimate Delta’s 2013 and 2012 net income or loss by including non-smoothed net pension expense in the computation of net income instead of reported pension expense.

 

reported pension expense

20132012
461573

 

 

non smooth pension expense 

-2333(2013)

2906(2012)

 

 

 

  • 7 years ago
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