Reference no: EM132664878

Question - Abbott and Abbott has a noncontributory, defined benefit pension plan. At December 31, 2021, Abbott and Abbott received the following information:

Projected Benefit Obligation($ in millions) Balance, January 1 $150 Service cost 26 Interest cost 15 Benefits paid (9) Balance, December 31 $182

Plan Assets Balance, January 1 $90 Actual return on plan assets 10 Contributions 2021 26 Benefits paid (9) Balance, December 31 $117

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, 2021.

Required -

1. Determine Abbott and Abbott's pension expense for 2021.

2. Prepare the journal entries to record Abbott and Abbott's (a) pension expense, (b) funding, and (c) payment for 2021.