Question

Lacy Construction has a noncontributory, defined benefit pension plan. At December 31, 2011, Lacy received the following information:

The expected long-term rate of return on plan assets was 10%. There were no AOCI balances related to pensions on January 1, 2011. At the end of 2011, Lacy amended the pension formula creating a prior service cost of $12 million, one-third of which is related to employees whose pension benefits have vested.

Required:
1. Determine Lacy's pension expense for 2011.
2. Prepare the journal entry(s) to record Lacy's pension expense, gains or losses, prior service cost, funding, and payment of retiree benefits for 2011.



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  • CreatedJuly 05, 2013
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