Allison Co. has the following postretirement benefit plan balances on January 1, 2012.

Accumulated Postretirement benefit obligation ..................$2,535,000

Fair value of plan assets ......................................................$2,535,000

The interest (settlement) rate applicable to the plan is 8%. On January 1, 2013, the company amends the plan so that prior service costs of $185,000 were created. Other data related to the pension plan are as follows:

Instructions:
(a) Prepare a worksheet for the postreitrement plan for 2012 & 2013.
(b) Prepare any journal entries related to the postretirement plan that would be needed at December 31, 2012.
(c) Prepare any journal entries related to the postretirement plan as of December 31, 2013.
(d) Show the postretirement-benefit–related amounts reported in the 2013 Income Statement and BalanceSheet.

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2013 2012 S80,000 Service costs Prior service costs amortization Contributions (funding) to the plan Benefits paid Actual returm on plan assets Expected rate of return on assets S87,000 13,000 38,000 43.000 155.000 47,000 41,000 200.000 900