Solution-Determine amazings postretirement benefit expense

Determine amazings postretirement benefit expense

Reference no: EM13847514

Data pertaining to the postretirement health care benefit plan of Amazing Delivery Service include the following for the current calendar year:

Service cost	$100,000
APBO, January 1	$600,000
Plan assets (fair value), January 1	$40,000
Prior service cost	None
Retiree benefits paid (end of year)	$75,000
Net gain (current year amortization, $500)	$82,000
Contribution to health care fund (end of year)	$172,000
Return on plan assets (actual and expected)	10%
Discount rate	7%

Required:

1) Determine Amazing's postretirement benefit expense for the current year.

2) Prepare the journal entry to record the benefit expense for the current year.

Reference no: EM13847514

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Determine amazings postretirement benefit expense

Reference no: EM13847514

Reference no: EM13847514

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