Elton AG has the following postretirement benefit plan balances on January 1, 2019.

Defined postretirement benefit obligation.....................€2,250,000

Fair value of plan assets......................................................2,250,000

The discount (interest) rate applicable to the plan is 10%. On January 1, 2020, 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 2019.

b. Prepare any journal entries related to the postretirement plan that would be needed at December 31, 2019.

c. Prepare a worksheet for 2020 and any journal entries related to the postretirement plan as of December 31, 2020.

d. Indicate the postretirement-benefit-related amounts reported in the 2020 financial statements.