Question

Southeast Technology provides postretirement health care benefits to employees. On January 1, 2021, the following plan-related data were available: Prior service cost-originated in 2016 Accumulated postretirement benefit obligation Fair value of plan assets Average remaining service period to retirement Average remaining service period to fall eligibility (Sin thousands) $ 53 560 hone 20 years (same in previous 10 years) 15 years in previous 10 years) On January 1, 2021, Southeast amends the plan in response to spiraling health care costs. The amendment establishes an annual maximum of $3,300 for medical benefits that the plan will provide. The actuary determines that the effect of this amendment is to decrease the APBO by $86,000. Management amortizes prior service cost on a straight-line basis. The interest rate is 10%. The service cost for 2021 is $117,000 Required: 1. Complete the below table to calculate the prior service cost amortization for 2021. 2. Complete the below table to calculate the postretirement benefit expense for 2021. (For all requirements, round your answers to 1 decimal place.)

Answer 1

An SHES Pageno 1 The prior service coşt amortization for 2021 - amount Particulars - tekin thousandy Prior service cost $53 Reduction for amendment (86) Revised paior Service Cost $ 33 Şervice period Cyears) Divided by me of years 15 Amortization, $2.2 The Porios service cost amortization for 2001 = $9.2 . Amountain.. 2) The postoru tivement benoit expense for 2021 interest Cost-$560-56 (reduction)] x 10%. = $utuy Particulare Service Cost $ 114 intrest Cost $47. Return Plan assets (0) Amortization of prior Service Cost $2.2) Postoretirement benefit Expenses $161.9 the post retirement benefit Expe nişe = $161.91