Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / On January 1 2013 Burleson Corporation s projected benefit obligation was $30 million Dur...

On January 1 2013 Burleson Corporation s projected benefit obligation was $30 million During 2013 pension benefits paid by the trustee were $4 million Service cost for 2013 is $12 million

 On January 1, 2013, Burleson Corporation s projected benefit obligation was $30 million. During 2013 pension benefits paid by the trustee were $4 million. Service cost for 2013 is $12 million. Pension plan assets (at fair value) increased during 2013 by $6 million as expected. At the end of 2013, there was no prior service cost and a negligible balance in net loss AOCI. The actuary s discount rate was 10%.

 

 

 

Required:

 

Determine the amount of the projected benefit obligation at December 31, 2013. (Enter your answer in millions.)

 

 

2. Pension data for Sterling Properties include the following:

 

Required:

 

Service cost, 2013 $112

 

Projected benefit obligation, January 1, 2013 850

 

Plan assets (fair value), January 1, 2013 900

 

Prior service cost AOCI (2013 amortization, $8) 80

 

Net loss AOCI (2013 amortization, $1) 101

 

Interest rate, 6%

 

Expected return on plan assets, 10%

 

Actual return on plan assets, 11%

 

 

 

Required

 

Determine pension expense for 2013.

 

 

3. Pension data for Millington Enterprises include the following:

 

 

 

Discount rate, 10%

 

Projected benefit obligation, January 1 $ 360

 

Projected benefit obligation, December 31 465

 

Accumulated benefit obligation, January 1 300

 

Accumulated benefit obligation, December 31 415

 

Cash contributions to pension fund, December 31 150

 

Benefit payments to retirees, December 31 54

 

 

 

Required:

 

Assuming no change in actuarial assumptions and estimates, determine the service cost component of pension expense for the year ended December 31. (Enter your answer in millions.)

 

 

4. Abbott and Abbott has a noncontributory, defined benefit pension plan. At December 31, 2013, Abbott and Abbott received the following information:

 

 

 

($in millions)

 

Projected Benefit Obligation

 

Balance, January 1 $120

 

Service cost 20

 

Interest cost 12

 

Benefits paid (9)

 

Balance, December 31 $143

 

Plant Assets

 

Balance, January 1 $80

 

Actual return on plan assets 9

 

Contribution 2011 20

 

Benefits paid (9)

 

Balance, December 31 $100

 

 

 

The expected long-term rate of return on plan assets was 10%. There was no prior service cost and a negligible net loss AOCI on January 1, 2013.

 

 

 

Required:

 

a. Determine Abbott and Abbott s pension expense for 2013.

 

b. Prepare the journal entries to record Abbott and Abbott s pension expense, funding, and payment for 2013.

Jun 23 2020 View more View Less

Answer (Solved)

question Subscribe To Get Solution

Related Questions