Refer to the data provided in E 17-19.
Projected Benefit Obligation ($ in millions)
Balance, January 1, 2018...............................................................$480
Service cost..................................................................................82
Interest cost, discount rate, 5%..........................................................24
Gain due to changes in actuarial assumptions in 2018..............................(10)
Pension benefits paid.......................................................................(40)
Balance, December 31, 2018...........................................................$536
Plan Assets
Balance, January 1, 2018...............................................................$500
Actual return on plan assets...............................................................40
(Expected return on plan assets, $45)
Cash contributions.............................................................................70
Pension benefits paid.....................................................................(40)
Balance, December 31, 2018.........................................................$570
January 1, 2018, balances:
Pension asset.................................................................................$ 20
Prior service cost-AOCI (amortization $8 per year) ..............................48
Net gain-AOCI (any amortization over 15 years).................................80
Required:
Prepare a pension spreadsheet to show the relationship among the PBO, plan assets, prior service cost, the net gain, pension expense, and the net pension asset.