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On January 1, 2019, Vasby Sottware Company adopted a healthcare plan for its retired employees. To determine eligibility for benetits, Vasby retroactivoly gives credit to
On January 1, 2019, Vasby Sottware Company adopted a healthcare plan for its retired employees. To determine eligibility for benetits, Vasby retroactivoly gives credit to the date of hire for each employee. The service cost for 2019 is $8.000. The plan is not funded, and the discount rate is 10%. All employees were hired at age 28 and become elgible for full benelits at age 58 . Employoe C was paid 57,000 tor postretirement heathcare benefits in 2019. On December 3, 2019, the accumilated postreticement benefit obligation for Employees B and C were $77,000 and $41,500, respectively. Addqional information on Jaruary 1, 2019, is as follows: Required: 1. Compute the OPAB expense for 2019 ir Vasby uses the average remaining service the to amortixe the prior service cost. 2. Prepare alf the required joumar entries for 2019 if the plan is not funded
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