Computing pension expense-underfunded retirement plan

Reference no: EM13827645

Problem:

1. Taylor Corp reported the following items in the 2012 pension footnote (in millions).

Service cost	$1,012
Benefits paid to retirees	290
Interest cost	980
Actual returns on pension plan assets	1,400
Expected returns on pension plan assets	1,540
Amortization of deferred amounts	$ 62

2. Buckeye Inc. has a defined benefit retirement plan. The company's 2012 annual report includes the following excerpt about these plans (in millions):

Projected benefit obligations, January 1, 2012	$8,606
Service cost - benefits earned during the year	332
Interest cost on projected benefit obligations	446
Actuarial losses (gains)	608
Benefits paid	(294)
Settlement	(776)
Other, primarily foreign currency translation	41
Projected benefit obligations, December 31, 2012	$8,963

Plans' assets at fair value, January 1, 2012	$7,451
Actual return on plan assets	29
Company contributions	394
Benefits paid	(294)
Settlement	(776)
Other, primarily foreign currency translation	157
Plan assets at fair value, December 31, 2012	$6,961

What is the funded status of this plan?

Additional Information:

These short answer questions is from Finance. The 1st question is about computing pension expense and the 2nd question is about computation of underfunded retirement plan.

Reference no: EM13827645

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