Actuary and trustee reports indicate the following changes in the PBO and plan assets of Lakeside...
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Actuary and trustee reports indicate the following changes in the PBO and plan assets of Lakeside Cable during 2021: Prior service cost at Jan. 1, 2021, from plan amendment at the beginning of 2019 (amortization: $7 million per year) Net Loss-pensions at Jan.1, 2021 (previous losses exceeded previous gains) Average remaining service life of the active employee group Actuary's discount rate ($ in millions) Beginning of 2021 Service cost Interest cost, 8% Loss (gain) on PBO Less: Retiree benefits End of 2021 РВО $550 Beginning of 2021 68 Return on plan assets, 44 7.5% (10% expected) (3) Cash contributions (59) Less: Retiree benefits $600 End of 2021 Plan Assets $400 30 79 (59) $450 $52 million $65 million 10 years 8% Assume the following actuary and trustee reports indicating changes in the PBO and plan assets of Lakeside Cable during 2022: ($ in millions) Complete Ch.17 Problems 6 Part 6 of 7 3.57 points eBook Print References Beginning of 2022 Service cost Interest cost, 8% Loss (gain) on PBO Less: Retiree benefits End of 2022 Problem 17-16 (Algo) Part 6 Bal. Jan. New loss Bal. Dec. 31 Bal. Jan. 1 Bal. Dec. 31 Net Loss-AOCI 5.0 6. Using T-accounts, determine the balances at December 31, 2022, in the net loss-AOCI and prior service cost-AOCI. (Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) PBO $600 58 48 5 (36) $675 32.1 36.0 New gain 1.1 Amortized in 2022 Prior Service Cost-AOCI Beginning of 2022 Return on plan assets, 18% (10% expected) Cash contributions Less: Retiree benefits End of 2022 Saved Amortized in 2022 Plan Assets $450 81 50 (36) $545 Help Save & Exit Submit Check my work Complete Ch. 17 Problems 7 Part 7 of 7 3.58 points eBook Print References Problem 17-16 (Algo) Part 7 ($ in millions) Bal., Jan. 1, 2022 Service cost Interest cost, 8% Expected return on assets Gain on assets Amortization of: Prior service cost-AOCI Net loss-AOCI Loss on PBO Cash contributions Retiree benefits Bal., Dec. 31, 2022 7. Prepare a pension spreadsheet to assist you in determining end of 2022 balances in the PBO, plan assets, prior service cost-AOCI, the net loss-AOCI, and the pension liability. (Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). Enter credit amounts with a minus sign and debit amounts with a positive sign.) PBO (600.0) Saved (600.0) Plan Assets 450.0 450.0 Prior Service Net Loss Cost-AOCI -AOCI 0.0 0.0 Pension Expense Help 0.0 Save & Exit Cash Submit Check my work Net Pension (Liability) / Asset 0.0 Actuary and trustee reports indicate the following changes in the PBO and plan assets of Lakeside Cable during 2021: Prior service cost at Jan. 1, 2021, from plan amendment at the beginning of 2019 (amortization: $7 million per year) Net Loss-pensions at Jan.1, 2021 (previous losses exceeded previous gains) Average remaining service life of the active employee group Actuary's discount rate ($ in millions) Beginning of 2021 Service cost Interest cost, 8% Loss (gain) on PBO Less: Retiree benefits End of 2021 РВО $550 Beginning of 2021 68 Return on plan assets, 44 7.5% (10% expected) (3) Cash contributions (59) Less: Retiree benefits $600 End of 2021 Plan Assets $400 30 79 (59) $450 $52 million $65 million 10 years 8% Assume the following actuary and trustee reports indicating changes in the PBO and plan assets of Lakeside Cable during 2022: ($ in millions) Complete Ch.17 Problems 6 Part 6 of 7 3.57 points eBook Print References Beginning of 2022 Service cost Interest cost, 8% Loss (gain) on PBO Less: Retiree benefits End of 2022 Problem 17-16 (Algo) Part 6 Bal. Jan. New loss Bal. Dec. 31 Bal. Jan. 1 Bal. Dec. 31 Net Loss-AOCI 5.0 6. Using T-accounts, determine the balances at December 31, 2022, in the net loss-AOCI and prior service cost-AOCI. (Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) PBO $600 58 48 5 (36) $675 32.1 36.0 New gain 1.1 Amortized in 2022 Prior Service Cost-AOCI Beginning of 2022 Return on plan assets, 18% (10% expected) Cash contributions Less: Retiree benefits End of 2022 Saved Amortized in 2022 Plan Assets $450 81 50 (36) $545 Help Save & Exit Submit Check my work Complete Ch. 17 Problems 7 Part 7 of 7 3.58 points eBook Print References Problem 17-16 (Algo) Part 7 ($ in millions) Bal., Jan. 1, 2022 Service cost Interest cost, 8% Expected return on assets Gain on assets Amortization of: Prior service cost-AOCI Net loss-AOCI Loss on PBO Cash contributions Retiree benefits Bal., Dec. 31, 2022 7. Prepare a pension spreadsheet to assist you in determining end of 2022 balances in the PBO, plan assets, prior service cost-AOCI, the net loss-AOCI, and the pension liability. (Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). Enter credit amounts with a minus sign and debit amounts with a positive sign.) PBO (600.0) Saved (600.0) Plan Assets 450.0 450.0 Prior Service Net Loss Cost-AOCI -AOCI 0.0 0.0 Pension Expense Help 0.0 Save & Exit Cash Submit Check my work Net Pension (Liability) / Asset 0.0
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Answer ANSWER Requirement 1a 1b Note All amounts are in millions Compute the pension expense 2021 Particulars Amount In Millions Service Cost 48 Inter... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-1260481952
10th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
Posted Date:
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