Determine danielsons postretirement benefit expense

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Reference no: EM13847520

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

Service cost

$150,000

APBO, January 1

$800,000

Plan assets (fair value), January 1

$80,000

Prior service cost (current year amortization, $2,000)

$90,000

Retiree benefits paid (end of year)

$90,000

Net gain (current year amortization, $500)

$92,000

Contribution to health care fund (end of year)

$85,000

Return on plan assets (actual and expected)

10%

Discount rate

8%

Required:

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

2) Prepare the journal entries to record the benefit expense and funding for the current year.

Reference no: EM13847520

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