Solution-Determine danielsons postretirement benefit expense

Determine danielsons postretirement benefit expense

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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Determine danielsons postretirement benefit expense

Reference no: EM13847520

Reference no: EM13847520

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