2017 2018 $ 75,000 $ 85,000 12,000 Service costs Prior service costs amortization -0- Contributions (funding) to the plan Benefits paid Actual return on plan assets Expected rate of return on assets 45,000 40,000 140,000 8% 35,000 45,000 120,000 6%
(Postretirement Benefit Worksheet—2 Years) Elton Co. has the following postretirement benefit plan balances on January 1, 2017.
| Accumulated postretirement benefit obligation | $2,250,000 |
| Fair value of plan assets | 2,250,000 |
The interest (settlement) rate applicable to the plan is 10%. On January 1, 2018, the company amends the plan so that prior service costs of $175,000 are created. Other data related to the plan are:
Check the below image for plan related data.
Instructions
(a) Prepare a worksheet for the postretirement plan in 2017.
(b) Prepare any
(c) Prepare a worksheet for 2018 and any journal entries related to the postretirement plan as of December 31, 2018.
(d) Indicate the postretirement-benefit–related amounts reported in the 2018 financial statements.
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