Rosek Inc. provides the following information related to its post-retirement benefits for the year 2011:
Accrued post-retirement benefit obligation at Jan. 1, 2011......$610,000
Plan assets, Jan. 1, 2011 .....................42,000
Unrecognized net transitional loss, Jan. 1, 2011 .......... 568,000
Actual and expected return on plan assets, 2011 ........... 3,000
Amortization of transition liability, 2011 ..............35,000
Discount rate ......................... 10%
Service cost, 2011 .......................57,000
Plan funding during 2011 ....................22,000
Payments from plan on behalf of retirees ............ 6,000
Actuarial loss on accrued benefit obligation, 2011 (end of year) .....88,000
The only unrecognized cost related to this plan at January 1, 2011, was the net transition loss. Rosek Corp. applies the deferral and amortization approach.
Instructions
(a) Calculate the post-retirement benefit expense for 2011.
(b) Determine the December 31, 2011 balance of the fund assets, the accrued obligation, and the funded status.
(c) Determine the balance of the accrued post-retirement benefit asset/liability account on the December 31, 2011 balance sheet.
(d) Reconcile the funded status with the amount reported on the balance sheet at December 31, 2011.