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:
Accumulated postretirement benefit obligation
Fair value of plan assets
Average remaining service period to retirement
None
Average remaining service period to full eligibility
years same in previous years
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.
Complete this question by entering your answers in the tabs below.
Required
Calculate the postretirement benefit expense for
Note: Enter your answers in millions rounded to decimal place ie should be entered as
