Ch$.17$ Homework

$($i$)$

Saved

$12$

Exercise $17-19($Static$)$ Record pension expense, funding, and gains and losses; financial statement effects $[$LO$17-6,17-7,17-8]$

$6\mathrm{.}25$

points

Beale Management has a noncontributory, defined benefit pension plan. On December $31,2024($the end of Beale's fiscal year$),$ the following pension$-$related data were available:

$\backslash$begin$\{$tabular$\}\{$lc$\}$

Projected Benefit Obligation & $(\backslash$$ in millions$)\backslash \backslash$

Balance, January $1,2024$ & $\backslash (\backslash$$ $480\backslash )\backslash \backslash$

Service cost & $82\backslash \backslash$

Interest cost, discount rate, $5\backslash \%$ & $24\backslash \backslash$

Gain due to changes in actuarial assumptions in $2024$ & $\backslash ((10)\backslash )\backslash \backslash$

Pension benefits paid & $\backslash ((40)\backslash )\backslash \backslash$

Balance, December $31,2024$ & $\backslash (\backslash$$ $536\backslash )$

$\backslash$end$\{$tabular$\}$

Required:

$1.$ to $3.$ Prepare the journal entries required for the pension during $2024.$

$4.$ Determine the balances at December $31,2024,$ in the net gain$-$AOCl, and prior service cost$-$AOCl. $[$Hint: You might find T$-$accounts useful.$]$

$5.$ What amount will Beale report in its $2024$ balance sheet as a net pension asset or net pension liability for the funded status of the plan?