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Beale Management has a noncontributory, defined be...

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Beale Management has a noncontributory, defined benefit pension plan. On December 31, 2011 (the end of Beale's fiscal year), the following pension-related data were available: Projected Benefit Obligation ($ in millions) Balance, January 1, 2011 $ 300 Service cost 80 Interest cost, discount rate, 7% 21 Gain due to changes in actuarial assumptions in 2011 (19 ) Pension benefits paid (60 ) Balance, December 31, 2011 $ 322 Plan Assets ($ in millions) Balance, January 1, 2011 $ 320 Actual return on plan assets 43 (Expected return on plan assets, $48) Cash contributions 77 Pension benefits paid (60 ) Balance, December 31, 2011 $ 380 January 1, 2011, balances: ($ in millions) Pension asset $ 20 Prior service cost-AOCI (amortization $4 per year) 24 Net gain-AOCI (any amortization over 13 years) 58 Required: Prepare a pension spreadsheet to show the relationship among the PBO, plan assets, prior service cost, the net gain, pension expense, and the net pension asset. (Enter your answers in millions. Credit amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Round your answers to the nearest whole number. Omit the "$" sign in your response.) ($ in millions) PBO Plan Assets Prior Service Cost Net Gain ? AOCI Pension Expense Cash Net Pension (Liability) / Asset Balance, Jan. 1, 2011 Service cost Interest cost, 7% Expected return on assets Adjust for: Loss on assets Amortization of: Prior service cost Net gain Gain on PBO Cash funding Retiree benefits Balance, Dec. 31, 2011

 

Paper#9569 | Written in 18-Jul-2015

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