Elton AG has the following postretirement benefit plan balances on January 1, 2019.
Defined postretirement benefit obligation.....................‚¬2,250,000
Fair value of plan assets............................................2,250,000
The discount (interest) rate applicable to the plan is 10%. On January 1, 2020, the company amends the plan so that past service costs of ‚¬175,000 are created. Other data related to the plan are as follows.

Instructions
a. Prepare a worksheet for the postretirement plan in 2019.
b. Prepare any journal entries related to the postretirement plan that would be needed at December 31, 2019.
c. Prepare a worksheet for 2020 and any journal entries related to the postretirement plan as of December 31, 2020.
d. Indicate the postretirement-benefit-related amounts reported in the 2020 financial statements.

Transcribed Image Text:

2019 2020 € 75,000 € 85,000 35,000 Service costs Contributions (funding) to the plan 45,000 40,000 45,000 140,000 120,000 Benefits paid Actual return on plan assets