*P 20-14 (LO6,7) (Postretirement Benefit Worksheet—2 Years) Elton Co. has the following postretirement benefit plan balances on January 1, 2017.
Accumulated postretirement benefi t obligation $2,250,000 Fair value of plan assets 2,250,000 The interest (settlement) rate applicable to the plan is 10%. On January 1, 2018, the company amends the plan so that prior service costs of $175,000 are created. Other data related to the plan are:
2017 2018 Service costs $ 75,000 $ 85,000 Prior service costs amortization –0– 12,000 Contributions (funding) to the plan 45,000 35,000 Benefi ts paid 40,000 45,000 Actual return on plan assets 140,000 120,000 Expected rate of return on assets 8% 6%
Instructions

(a) Prepare a worksheet for the postretirement plan in 2017.

(b) Prepare any journal entries related to the postretirement plan that would be needed at December 31, 2017.

(c) Prepare a worksheet for 2018 and any journal entries related to the postretirement plan as of December 31, 2018.

(d) Indicate the postretirement-benefit–related amounts reported in the 2018 financial statements.