Elton Co. has the following postretirement benefit plan balances on January 1, 2014.

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, 2015, 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 2014.
  (b) Prepare any journal entries related to the postretirement plan that would be needed at December 31, 2014.
  (c) Prepare a worksheet for 2015 and any journal entries related to the postretirement plan as of December 31, 2015.
  (d) Indicate the postretirement-benefit–related amounts reported in the 2015 financial statements.