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Determine Lacy's pension expense for 2013

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Lacy Construction has a noncontributory, defined benefit pension plan. At December 31, 2013, Lacy received the following information;Projected Benefit Obligation ($ in millions);Balance, January 1 $ 500;Service cost 74;Interest cost (5%) 25;Benefits paid (72);Balance, December 31 $ 527;Plan Assets ($ in millions);Balance, January 1 $ 370;Actual return on plan assets 42;Contributions 2013 74;Benefits paid (72);Balance, December 31 $ 414;The expected long-term rate of return on plan assets was 10%. There were no AOCI balances related to pensions on January 1, 2013. At the end of 2013, Lacy amended the pension formula creating a prior service cost of $26 million.;Required;1. Determine Lacy's pension expense for 2013.;2. Prepare the journal entry(s) to record Lacy?s pension expense, gains or losses, prior service cost, funding, and payment of retiree benefits for 2013.

 

Paper#25768 | Written in 18-Jul-2015

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