Bazerman Inc.has a postretirement health care benefit plan.On January 1 of the current calendar year,the following plan-related data were available.

The rate of return on plan assets during the year was 12%.The expected return was 10%.The actuary revised assumptions regarding the APBO at the end of the year,resulting in a $42,000 increase in the estimate of the obligation.
Required:
1)Calculate any amortization of net loss that should be included as a component of postretirement benefit expense for the current year.
2)Determine the net loss or gain as of December 31 of the current year.

Question

Bazerman Inc.has a postretirement health care benefit plan.On January 1 of the current calendar year,the following plan-related data were available.
  
The rate of return on plan assets during the year was 12%.The expected return was 10%.The actuary revised assumptions regarding the APBO at the end of the year,resulting in a $42,000 increase in the estimate of the obligation.
Required:
1)Calculate any amortization of net loss that should be included as a component of postretirement benefit expense for the current year.
2)Determine the net loss or gain as of December 31 of the current year.

Quizplus · Accepted Answer

The Answer of Bazerman Inc.has a postretirement health care benefit plan.On January 1 of the current calendar year,the following plan-related data were available.
  
The rate of return on plan assets during the year was 12%.The expected return was 10%.The actuary revised assumptions regarding the APBO at the end of the year,resulting in a $42,000 increase in the estimate of the obligation.
Required:
1)Calculate any amortization of net loss that should be included as a component of postretirement benefit expense for the current year.
2)Determine the net loss or gain as of December 31 of the current year.