Reference no: EM132726530
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 $100
Service cost 27
Interest cost 11
Benefits paid (10)
Balance, December 31 $128
Plan Assets
Balance, January 1 $100
Actual return on plan assets 13
Contributions 2021 27
Benefits paid (10)
Balance, December 31 $130
The expected long-term rate of return on plan assets was 11%. 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.