question archive Brown Industries provides postretirement health care benefits to employees
Brown Industries provides postretirement health care benefits to employees
Subject:AccountingPrice: Bought3
Brown Industries provides postretirement health care benefits to employees. On January 1 of the current calendar year, the following data were available.
Prior service cost $53,000
APBO $510,000
Fair value of plan assets none
Average remaining service period to retirement 25years
Average remaining service period to full eligibility 20years
Management amortizes prior service cost on a straight-line basis. The interest rate is 12%. Service cost for the current year is $98,000.
How would each of the following be calculated?
1)The prior service cost amortization for the current year.
2)The postretirement benefit expense for the current year.
3)The entry to record the postretirement benefit expense for the current year.
