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Gorky - Park Corporation provides postretirement health care benefits to employees who provide at least 1 0 years of service and reach age 6 0
GorkyPark Corporation provides postretirement health care benefits to employees who provide at least years of service and reach age while in service. On January the following planrelated data were available:
$ in millions
Accumulated postretirement benefit obligation $
Fair value of plan assets None
Average remaining service period to retirement years same in previous years
Average remaining service period to full eligibility years same in previous years
On January GorkyPark amends the plan to provide certain dental benefits in addition to previously provided medical benefits. The actuary determines that the cost of making the amendment retroactive increases the APBO by $ million. Management chooses to amortize the prior service cost on a straightline basis. The service cost for is $ million. The interest rate is
Required:
Calculate the postretirement benefit expense for
Prepare the journal entry to record the expense.
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