Analyzing and Interpreting Pension Footnote-Funded and Reported Amounts Verizon Communications Inc. reports the following pension data...

Transcribed Image Text:

Analyzing and Interpreting Pension Footnote-Funded and Reported Amounts Verizon Communications Inc. reports the following pension data in Note 11 to a recent 10-K report. At December 31 ($ millions) Pension Change in Benefit Obligations Beginning of year Service cost $30,217 307 Interest cost 1,590 Plan amendments (485) Actuarial loss (gain), net 3,360 Benefits paid and settlements (3,407) End of year 31,582 Change in Plan Assets Beginning of year 25,914 Actual return on plan assets 1,191 Company contributions 512 Benefits paid and settlements (3,407) End of year 24,210 Funded Status End of year $(7,372) a. Show the computation of Verizon's December 31 funded status. Note: Do not use negative signs with any of your answers. Pension obligation $ x million Fair value of the plan assets $ * million * million b. What net pension amount is reported on its December 31 balance sheet? x million Analyzing and Interpreting Pension Footnote-Funded and Reported Amounts Verizon Communications Inc. reports the following pension data in Note 11 to a recent 10-K report. At December 31 ($ millions) Pension Change in Benefit Obligations Beginning of year Service cost $30,217 307 Interest cost 1,590 Plan amendments (485) Actuarial loss (gain), net 3,360 Benefits paid and settlements (3,407) End of year 31,582 Change in Plan Assets Beginning of year 25,914 Actual return on plan assets 1,191 Company contributions 512 Benefits paid and settlements (3,407) End of year 24,210 Funded Status End of year $(7,372) a. Show the computation of Verizon's December 31 funded status. Note: Do not use negative signs with any of your answers. Pension obligation $ x million Fair value of the plan assets $ * million * million b. What net pension amount is reported on its December 31 balance sheet? x million

Answer rating: 100% (QA)

a Computation of Verizons December 31 funded status Pension obligation End of year 31582 millio... View the full answer