(Postretirement Benefit Worksheet—2 Years) Elton Co. has the following postretirement benefit plan balances on January 1, 2010.
Accumulated postretirement benefit obligation $2,250,000
Fair value of plan assets 2,250,000
The interest (settlement) rate applicable to the plan is 10%. On January 1, 2011, the company amends the plan so that prior service costs of $175,000 are created. Other data related to the plan are:
(a) Prepare a worksheet for the postretirement plan in 2010.
(b) Prepare any journal entries related to the postretirement plan that would be needed at December 31, 2010.
(c) Prepare a worksheet for 2011 and any journal entries related to the postretirement plan as of December 31, 2011.
(d) Indicate the postretirement-benefit–related amounts reported in the 2011 financial statements.