Question: To focus on the core issues, we ignored the income tax effects of the pension amounts we recorded in the chapter. Reproduced below are the

To focus on the core issues, we ignored the income tax effects of the pension amounts we recorded in the chapter. Reproduced below are the journal entries from the chapter that Global Communications used to record its pension expense and funding in 2011 and the new gain and loss that occurred that year.

Required:

1. Recast these journal entries to include the income tax effects of the events being recorded. Assume that Global's tax rate is 40%.

2. Prepare a statement of comprehensive income for 2011 assuming Global's only other sources of comprehensive income were net income of $300 million and a $30 million unrealized holding gain on investments in securities available for sale.

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Requirement 1 To Record Pension Expense in millions Deferred tax asset 40 x 41 24 27 152 Pension expense 41 24 27 4 1 430 Plan assets expected return ... View full answer

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