Data pertaining to the postretirement health care benefit plan of Sterling Properties include the following for 2016: ($ in 000s) Service cost $124 Accumulated postretirement benefit obligation, January 1 700 Plan assets (fair value), January 1 50 Prior service cost–AOCI none Net gain–AOCI (2016 amortization, $1) 91 Retiree benefits paid (end of year) 87 Contribution to health care benefit fund (end of year) 185 Discount rate, 7% Return on plan assets (actual and expected), 10% Required: 1. Determine the postretirement benefit expense for 2016. 2. Prepare the appropriate journal entries to record the postretirement benefit expense, funding, and retiree benefits for 2016.
Data pertaining to the postretirement health care benefit plan of Sterling Properties include the following for 2016:
($ in 000s)
Service cost $124
Accumulated postretirement benefit obligation, January 1 700
Plan assets (fair value), January 1 50
Prior service cost–AOCI none
Net gain–AOCI (2016 amortization, $1) 91
Retiree benefits paid (end of year) 87
Contribution to health care benefit fund (end of year) 185
Discount rate, 7%
Return on plan assets (actual and expected), 10%
Required:
1. Determine the postretirement benefit expense for 2016.
2. Prepare the appropriate
for 2016.
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