Question

Manno Corporation has the following information available concerning its postretirement benefit plan for 2017. Service cost $40,000 Interest cost 47,400 Actual and expected return on plan assets 26,900 Compute Manno’s 2017 postretirement expense.

Short answer

Postretirement expense is the type of expenditure an individual incurs after the person has reached their retirement ageand is not obliged to work in any organization further.

Step-by-step solution

Step 1: Given the following amounts:

Particulars	Amount
Service cost	$40,000
Interest cost	$47,400
Actual and expected return on plan assets	$26,900

Step 2:Computation of Manno’s 2017 postretirement expense.

Particulars	Amount
Service cost	$40,000
Add: Interest cost	$47,400
Less: Expected return on plan assets	$26,900
Postretirement Expense 2017	$60,500