Bernard Corporation has an unfunded postretirement health care benefit plan. Life insurance and medical care benefits are provided to employees who render 12 years of service and attain age 55 while in service to the company. At the end of 2013, Teri Clark is 35. She was hired by Bernard five years ago at age 30 and is expected to retire at the age of 62. The expected postretirement benefit obligation for Teri is $50,000 at the end of 2013 and $60,000 at the end of 2014.
Required:
Calculate the accumulated postretirement benefit obligation at the end of 2013 and 2014 and the service cost for 2013 and 2014 pertaining to Teri.

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The Answer of Bernard Corporation has an unfunded postretirement health care benefit plan. Life insurance and medical care benefits are provided to employees who render 12 years of service and attain age 55 while in service to the company. At the end of 2013, Teri Clark is 35. She was hired by Bernard five years ago at age 30 and is expected to retire at the age of 62. The expected postretirement benefit obligation for Teri is $50,000 at the end of 2013 and $60,000 at the end of 2014.
Required:
Calculate the accumulated postretirement benefit obligation at the end of 2013 and 2014 and the service cost for 2013 and 2014 pertaining to Teri.

Bernard Corporation Has an Unfunded Postretirement Health Care Benefit Plan