Exhibits 12.18 and 12.19 present selected information from the notes to the financial statements of Juicy-Juice, a U.S. based beverage company, regarding its pension and health care retirement plans.

a. What is the likely reason for the actuarial gains in the pension and health care obligations during 2013?

b. Did the pension plan investments perform as expected during 2012 and 2013? Explain.

c. Why is the expected return on health care assets equal to zero in each year?

d. Prepare an analysis that explains the change in prior service cost for pension plans from $5 million at the end of 2012 to $13 million at the end of 2013.

e. Prepare an analysis that explains the change in the net actuarial loss for pension plans from $2,285 million at the end of 2012 to $1,836 million at the end of 2013.

f. Prepare an analysis that explains the change in the prior service credit for health care plans from $114 million at the end of 2012 to $101 million at the end of 2013.

g. Prepare an analysis that explains the change in the net actuarial loss for health care plans from $419 million at the end of 2012 to $364 million at the end of 2013.

h. Give the journal entry that this firm would make at the end of 2013 to recognize net pension expense, pension funding, and the change in balance sheet accounts for its pension plan.
i. Give the journal entry that this firm would make at the end of 2013 to recognize net health care expense, health care funding, and the change in balance sheet accounts for its health careplan.

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Funded Status of Juicy-Juice's U.S Pension and Health Care Plans EXHIBIT 12.19 U.S. Pension Plans Health Care Plans 2012 4,968 1,312 1,319 40 78 2013 2012 2013 245 319 213 296 46 72 (163) (233) (3) $5,947 (45) (74) 18492 S 1,312 517 34 Benefits Paid . . .._ _ . (241) (75) _ _ . .. Benefit Obligation, December 31... S 5,771 $1,370 Fair Value of Plan Assets, January 1.. . . ...$5,086 513 19 (233) $ 4,152 477 699 (241) 75 Benefits Paid . . .._ _ . (75) (74) _ _ . . .. Fair Value of Plan Assets, December 31... ...$5,378 $5,086 Recognized in $ 2,068 (100) (25) (729) (2,753) (1270) (569) Noncurrent Liabilities. . 1,312 . Net Asset (Liability) Recognized (685) (1,370) (1312) $ 2,285 $ 364 $ 419 Actuarial Assumptions: Discount Rate...._ _ . 5.8% 7.8% 4.5% 5.7% 7.8% 4.4% 5.8% 5.7% _ _ . . .. Initial Health Care Cost Trend Rate .. _ . . .. .. Ultimate Health Care Cost Trend Rate. _ . . .. .. Number of Years to Ultimate Trend Rate . 9.0% 5.0% 5 years 10.0% 5.0% 5 years