Elton Co. has the following post-retirement benefit plan balances on January 1, 2020.

Accumulated post-retirement benefit obligation................$2,250,000Fair value of plan assets............................................................2,250,000

The interest (settlement) rate applicable to the plan is 10%. On January 1, 2021, 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 post-retirement plan in 2020.

b. Prepare any journal entries related to the post-retirement plan that would be needed at December 31, 2020.

c. Prepare a worksheet for 2021 and any journal entries related to the post-retirement plan as of December 31, 2021.

d. Indicate the post-retirement-benefit?related amounts reported in the 2021 financial statements.

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2020 2021 Service costs Prior service costs amortization Contributions (funding) to the plan Benefits paid Actual return on plan assets Expected rate of return on assets $ 75,000 $ 85,000 -0- 45,000 40,000 12,000 35,000 45,000 140,000 8% 120,000 6%