Plan assets Expected postretirement benefit obligation Accumulated postretirement benefit obligation No prior service costs or OCI balances exist. $200,000 820,000 200,000 As a result of the plan's operation during 2017, the following additional data are provided by the actuary. Service cost is $70,000 Discount rate is 10% Contributions to plan are $65,000 Expected return on plan assets is $10,000 Actual return on plan assets is $15,000 Benefits paid to employees are $44,000 Average remaining service to full eligibility: 20 years
(Postretirement Benefit Worksheet) Hollenbeck Foods Inc. sponsors a postretirement medical and dental benefit plan for its employees. The following balances relate to this plan on January 1, 2017.
Check the below image for balances
Instructions
(a) Using the preceding data, compute the net periodic postretirement benefit cost for 2017 by preparing a worksheet that shows the
(b) Prepare any journal entries related to the postretirement plan for 2017 and indicate the postretirement amounts reported in the financial statements for 2017.
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