Question: Actuary and trustee reports indicate the following changes in the PBO and plan assets of Mahomes Industries during 2024: Required: 1. Determine the companys pension

Actuary and trustee reports indicate the following changes in the PBO and plan assets of Mahomes Industries during 2024:

Prior service cost at Jan. 1, 2024, from plan amendment at the

Required:
1. Determine the company’s pension expense for 2024, and prepare the appropriate journal entry to record the expense.
2. Prepare the appropriate journal entry(s) to record any 2024 gains and losses.
3. Prepare the appropriate journal entry to record the cash contribution to plan assets.
4. Prepare the appropriate journal entry to record retiree benefits.

Prior service cost at Jan. 1, 2024, from plan amendment at the beginning of 2021 (amortization: $4 million per year) Net loss-AOCI at Jan. 1, 2024 (previous losses exceeded previous gains) Average remaining service life of the active employee group Actuary's discount rate ($ in millions) PBO Beginning of 2024 Service cost Interest cost, 7% Loss (gain) on PBO Less: Retiree benefits End of 2024 $600 80 42 (14) (38) $670 Plan Assets $28 million $80 million 10 years 7% Beginning of 2024 Return on plan assets, 8% (10% expected) Cash contributions Less: Retiree benefits End of 2024 $400 32 90 (38) $484

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Requirement 1 in millions Pension expense calculated below 88 Plan assets expected return on assets 40 Amortization of net lossOCI current amortization 2 Amortization of prior service costOCIcurrent a... View full answer

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