Required information

Problem 17-16 Comprehensive-reporting a pension plan; pension spreadsheet; determine changes in balances; two years [LO17-3, 17-4, 17-5, 17-6, 17-7, 17-8]

[The following information applies to the questions displayed below.] Actuary and trustee reports indicate the following changes in the PBO and plan assets of Lakeside Cable during 2018:

Prior service cost at Jan. 1, 2018, from plan amendment at the beginning of 2016 (amortization: $6 million per year)	$	50	million
Net losspensions at Jan.1, 2018 (previous losses exceeded previous gains)	$	60	million
Average remaining service life of the active employee group		10	years
Actuarys discount rate		8	%

($ in millions)

	PBO				Plan Assets
Beginning of 2018	$	500		Beginning of 2018		$	360
Service cost		66		Return on plan assets,
Interest cost, 8%		40		7.5% (10% expected)			27
Loss (gain) on PBO		(4	)	Cash contributions			65
Less: Retiree benefits		(52	)	Less: Retiree benefits			(52	)
End of 2018	$	550		End of 2018		$	400

Problem 17-16 Part 7

7. Prepare a pension spreadsheet to assist you in determining end of 2018 balances in the PBO, plan assets, prior service costAOCI, the net lossAOCI, 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.)

Answer is complete but not entirely correct.

($ in millions)	PBO	Plan Assets	Prior Service CostAOCI	Net Loss AOCI	Pension Expense	Cash	Net Pension (Liability) / Asset
Bal., Jan. 1, 2019	(500)selected answer incorrect	360selected answer incorrect	50selected answer incorrect	60selected answer incorrect	not attempted	not attempted	(140)selected answer incorrect
Service cost	(66)selected answer incorrect	not attempted	not attempted	not attempted	66selected answer incorrect	not attempted	(66)selected answer incorrect
Interest cost, 8%	(40)selected answer incorrect	not attempted	not attempted	not attempted	40selected answer incorrect	not attempted	(40)selected answer incorrect
Expected return on assets	not attempted	36selected answer incorrect	not attempted	not attempted	(36)selected answer incorrect	not attempted	36selected answer incorrect
Gain on assets	not attempted	4selected answer incorrect	not attempted	(4)selected answer incorrect	not attempted	not attempted	4selected answer incorrect
Amortization of:
Prior service costAOCI	not attempted	not attempted	(6)selected answer correct	not attempted	6selected answer correct	not attempted	not attempted
Net lossAOCI	not attempted	not attempted	not attempted	(1.0)selected answer incorrect	1.0selected answer incorrect	not attempted	not attempted
Loss on PBO	4selected answer incorrect	not attempted	not attempted	(4)selected answer incorrect	not attempted	not attempted	4selected answer incorrect
Cash contributions	not attempted	65selected answer incorrect	not attempted	not attempted	not attempted	(65)selected answer incorrect	65selected answer incorrect
Retiree benefits	52selected answer incorrect	(52)selected answer incorrect	not attempted	not attempted	not attempted	not attempted	not attempted
Bal., Dec. 31, 2019	(550)	413	44	51.0	77.0		(137)