Question

Flounder Inc. provides the following information related to its postretirement benefits for the year 2017.

Accumulated postretirement benefit obligation at January 1, 2017		$642,600
Actual and expected return on plan assets		36,100
Prior service cost amortization		20,100
Discount rate		9	%
Service cost		86,900

Compute postretirement benefit expense for 2017.

Postretirement benefit expense

$

Answer 1

Answer: $128,734
CALCULATION:
Post-retirement benefit expense:
Service cost	$          86,900
+Interest cost [642600*9%]	$          57,834
+Prior service amortization cost	$          20,100
-Actual and expected return on plan assets	$        -36,100
Post-retirement benefit expense =	$      1,28,734