The following information is related to the Stone Co. postretirement benefits plan for 2015:
Service cost $163,000
Discount rate 10%
EPBO, January 1, 2015 820,000
APBO, January 1, 2015 660,000
Actual return on plan assets in 2015 22,400
Expected return on plan assets in 2015 29,000
Contributions (funding) 224,000
Instructions:
A) Compute the amount of postretirement expense for 2015. (Show computations)
B) Prepare the journal entry to record postretirement expense and Stone's contributions for 2015.