(Postretirement Benefit Worksheet—2 Years) Embry Co. has the following postretirement ben- efit plan balances on January 1, 2009.

The interest (settlement) rate applicable to the plan is 10%. On January 1, 2010, the company amends the plan so that prior service costs of $175,000 are created. Other data related to the plan are:

Instructions

(a) Prepare a worksheet for the postretirement plan in 2009.

(b) Prepare any journal entries related to the postretirement plan that would be needed at December 31, 2009.

(c) Prepare a worksheet for 2010 and any journal entries related to the postretirement plan as of December 31, 2010.

(d) Indicate the postretirement-benefit-related amounts reported in the 2010 financial statements.

Transcribed Image Text:

Accumulated postretirement benefit obligation $2,500,000 Fair value of plan assets 2,500,000