Determine Abbott and Abbott pension expense

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Problem - Abbott and Abbott has a non-contributory, defined benefit pension plan. At December 31, 2018, Abbott and Abbott received the following information:

Projected Benefit Obligation

($ in millions)

Balance, January 1

$200

Service cost

36

Interest cost

20

Benefits paid

(10)

Balance, December 31

$246

 

Plan Assets

 

Balance, January 1

$80

Actual return on plan assets

9

Contributions 2018

36

Benefits paid

(10)

Balance, December 31

$115

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, 2018.

Required -

1. Determine Abbott and Abbott's pension expense for 2018.

2. Prepare the journal entries to record Abbott and Abbott's pension expense, funding, and payment for 2018.

Reference no: EM132830252

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