Elton AG has the following postretirement benefit plan balances on January 1, 2022.

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, 2023, 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 2022. 

b. Prepare any journal entries related to the postretirement plan that would be needed at December 31, 2022.

c. Prepare a worksheet for 2023 and any journal entries related to the postretirement plan as of December 31, 2023.

d. Indicate the postretirement-benefit–related amounts reported in the 2023 financial statements.

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2022 2023 Service costs € 75,000 € 85,000 Contributions (funding) to the plan 45,00o 35,000 Benefits paid 40,000 45,000 Actual return on plan assets 140,000 120,000