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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Postretirement benefits; amortization of net loss
Cahal-Michael Company has a postretirement health care benefit plan. On January 1, 2016, the following planrelated data were available:

The rate of return on plan assets during 2016 was 10%, although it was expected to be 9%. The actuary revised assumptions regarding the APBO at the end of the year, resulting in a $39,000 increase in the estimate of that obligation.
Required:
1. Calculate any amortization of the net loss that should be included as a component of postretirement benefit expense for 2016.
2. Assume the postretirement benefit expense for 2016, not including the amortization of the net loss component, is $212,000. What is the expense for the year?
3. Determine the net loss or gain as of December 31, 2016.
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