Elton Co. has the following postretirement benefit plan balances on January 1, 2015.

The discount (interest) rate applicable to the plan is 10%. On January 1, 2016, the company amends the plan so that past service costs of €175,000 are created. Other data related to the plan are as follows.

Instructions

(a) Prepare a worksheet for the postretirement plan in 2015.

(b) Prepare any journal entries related to the postretirement plan that would be needed at December 31, 2015.

(c) Prepare a worksheet for 2016 and any journal entries related to the postretirement plan as of December 31, 2016.

(d) Indicate the postretirement-benefit–related amounts reported in the 2016 financial statements.

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Defined postretirement benefit obligation 2,250,000 Fair value of plan assets 2,250,000