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

Accumulated postretirement benefit obligation          $2,250,000
Fair value of plan assets                                               2,250,000

The interest (settlement) rate applicable to the plan is 10%. On January 1, 2013, the company amends the plan so that prior service costs of $175,000 are created. Other data related to the plan are:

            

Instructions
  (a) Prepare a worksheet for the postretirement plan in 2012.
  (b) Prepare any journal entries related to the postretirement plan that would be needed at December 31, 2012.
  (c) Prepare a worksheet for 2013 and any journal entries related to the postretirement plan as of December 31, 2013.
  (d) Indicate the postretirement-benefit–related amounts reported in the 2013 financial statements.