Exercise $17-20($Algo$)$ Pension spreadsheet $[$LO$17-8]$

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$\}\{|$c$|$c$|\}$

$\backslash$hline Projected Benefit Obligation & $\backslash [$

$\backslash$begin$\{$array$\}\{$l$\}$

$\backslash$text $\{(\backslash$$ in $\}\backslash \backslash$

$\backslash$text $\{$ millions$)\}$

$\backslash$end$\{$array$\}$

$\backslash ]\backslash \backslash$

$\backslash$hline Balance, January $1,2024$ & $\backslash$$ $520\backslash \backslash$

$\backslash$hline Service cost & $54\backslash \backslash$

$\backslash$hline Interest cost, discount rate, $5\backslash \%$ & $26\backslash \backslash$

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

$\backslash$hline Pension benefits paid & $(26)\backslash \backslash$

$\backslash$hline Balance, December $31,2024$ & $\backslash$$ $564\backslash \backslash$

$\backslash$hline Plan Assets $\backslash (\backslash$begin$\{$array$\}\{$c$\}\backslash$text $\{(\backslash$$ in $\}\backslash \backslash \backslash$text $\{$ millions$)\}\backslash$end$\{$array$\}\backslash )$ & $\backslash \backslash$

$\backslash$hline Balance, January $1,2024\backslash$$ $540$ & $\backslash \backslash$

$\backslash$hline $\backslash$begin$\{$tabular$\}\{$l$\}$

Actual return on plan assets $\backslash \backslash$

$($Expected return on plan assets, $\backslash$$$41)$

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

$\backslash$hline Cash contributions $77$ & $\backslash \backslash$

$\backslash$hline Pension benefits paid $(26)$ & $\backslash \backslash$

$\backslash$hline Balance, December $31,2024\backslash$$ $627$ & $\backslash \backslash$

$\backslash$hline January $1,2024,$ balances: & $\backslash [$

$\backslash$begin$\{$array$\}\{$l$\}$

$\backslash$text $\{(\backslash$$ in $\}\backslash \backslash$

$\backslash$text $\{$ millions$)\}$

$\backslash$end$\{$array$\}$

$\backslash ]\backslash \backslash$

$\backslash$hline Pension asset & $\backslash$$ $20\backslash \backslash$

$\backslash$hline Prior service cost$-$AOCI $($amortization $\backslash$$$4$ per year$)$ & $20\backslash \backslash$

$\backslash$hline Net gain$-$AOCI $($any amortization over $10$ years$)$ & $104\backslash \backslash$

$\backslash$hline

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

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.

Note: Enter credit amounts with a minus sign and debit amounts with a positive sign. Enter your answers in millions $($i$.$e$.,10,000,000$ should be entered as $10).$

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|$c$|$c$|$c$|$c$|$c$|\}$

$\backslash$hline $(\backslash$$ in millions$)$ & PBO & Plan Assets & Prior Service CostAOCl & $\backslash$begin$\{$tabular$\}\{$l$\}$

Net $\backslash \backslash$

Gain$-\backslash \backslash$

AOCl

$\backslash$end$\{$tabular$\}$ & $\backslash$begin$\{$tabular$\}\{$l$\}$

Pension $\backslash \backslash$

Expense

$\backslash$end$\{$tabular$\}$ & Cash & Net Pension $($Liability$)$ I Asset $\backslash \backslash$

$\backslash$hline Balance, January $1,2024$ & & & & & & & $\backslash \backslash$

$\backslash$hline Service cost & & & & & & & $\backslash \backslash$

$\backslash$hline Interest cost, $5\backslash \%$ & & & & & & & $\backslash \backslash$

$\backslash$hline Expected return on assets & & & & & & & $\backslash \backslash$

$\backslash$hline Adjust for: & & & & & & & $\backslash \backslash$

$\backslash$hline Loss on assets & & & & & & & $\backslash \backslash$

$\backslash$hline Amortization of: & & & & & & & $\backslash \backslash$

$\backslash$hline Prior service cost & & & & & & & $\backslash \backslash$

$\backslash$hline Net gain & & & & & & & $\backslash \backslash$

$\backslash$hline Gain on PBO & & & & & & & $\backslash \backslash$

$\backslash$hline Cash funding & & & & & & & $\backslash \backslash$

$\backslash$hline Retiree benefits & & & & & & & $\backslash \backslash$

$\backslash$hline $\backslash [$

$\backslash$begin$\{$array$\}\{$l$\}$

$\backslash$text $\{$ Balance, December $31,\}\backslash \backslash$

$2024$

$\backslash$end$\{$array$\}$

$\backslash ]$ & $\backslash$$ $0$ & $\backslash$$ $0$ & $\backslash$$ $0$ & $\backslash$$ $0$ & $\backslash$$ $0$ & & $\backslash$$ $\backslash \backslash$

$\backslash$hline

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