Englehart Co. provides the following information about its postretirement benefi

ID: 2434230 • Letter: E

Question

Englehart Co. provides the following information about its postretirement benefit plan for the year 2011.

Service cost $94,300
Prior service cost amortization 6,690
Contribution to the plan 66,690
Actual and expected return on plan assets 64,020
Benefits paid 44,890
Plan assets at January 1, 2011 712,140
Accumulated postretirement benefit obligation at January 1, 2011 765,500
Accumulated OCI (PSC) at January 1, 2011 103,200 Dr.
Discount rate 9%

Compute the postretirement benefit expense for 2011.

Explanation / Answer

Service cost $99,322

Interest cost (539,900 *10%) 53,990

Expected return on plan assets (12,000)

Prior service cost amortization 12,288

Date

Accounts Title

Dr.

Cr.

2010

Pension expense

$153,600

Cash

$138,240

Pension assets liability

15,360