Reference no: EM132925662
Question - Computing postretirement expense and APBO.
The following information is related to the postretirement benefits plan of Heerey, Inc. for 2018:
Service cost $320,000
Discount rate 8%
Actual PBO, January 1, 2018 2,500,000
Estimated PBO, January 1, 2018 2,700,000
Actual return on plan assets in 2018 104,000
Expected return on plan assets in 2018 95,600
Amortization of PSC, due to benefit increase 107,200
Contributions (funding) 400,000
Benefit payments 208,000
Required -
(a) Compute the amount of postretirement expense for 2018. (Show all computations.)
(b) Compute the amount of the Actual PBO at December 31, 2018.