The projected benefit obligation (PBO) and plan assets of Illini Industries' defined benefit pension plan, and...

 

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The projected benefit obligation (PBO) and plan assets of Illini Industries' defined benefit pension plan, and the balance in AOCI prior service cost and AOCI net gain, are given below in millions of $: Balance Projected benefit obligations Plan Assets AOCI-Prior service cost AOCI-Net gain 2019 Beginning Balance 2,900 3,400 525 420 2019 Ending 1) Actual return on plan assets 2) Gain or loss on plan assets (please specify gain or loss) 3) Service cost Retirees were paid $380 million, and the employer contribution to the pension fund was $240 million at the end of 2019. The expected return on plan assets was 2%, and the discount rate was 7%. There were no changes in actuarial estimates and assumption regarding the PBO, and no plan amendments. The average remaining service life of employees is 10 years. Required: Determine the following amounts for 2019. Please show your work. 3,200 3,300 500 384 4) Prior service cost amortization 5) Amortization of net gain (please demonstrate the corridor method) The projected benefit obligation (PBO) and plan assets of Illini Industries' defined benefit pension plan, and the balance in AOCI prior service cost and AOCI net gain, are given below in millions of $: Balance Projected benefit obligations Plan Assets AOCI-Prior service cost AOCI-Net gain 2019 Beginning Balance 2,900 3,400 525 420 2019 Ending 1) Actual return on plan assets 2) Gain or loss on plan assets (please specify gain or loss) 3) Service cost Retirees were paid $380 million, and the employer contribution to the pension fund was $240 million at the end of 2019. The expected return on plan assets was 2%, and the discount rate was 7%. There were no changes in actuarial estimates and assumption regarding the PBO, and no plan amendments. The average remaining service life of employees is 10 years. Required: Determine the following amounts for 2019. Please show your work. 3,200 3,300 500 384 4) Prior service cost amortization 5) Amortization of net gain (please demonstrate the corridor method)

Answer rating: 100% (QA)

1 Actual return on plan assets 3400 x 2 68 2 Gain or loss on plan as... View the full answer