Reference no: EM132727544
Beale Management has a noncontributory, defined benefit pension plan. On December 31, 2021 (the end of Beale's fiscal year), the following pension-related data were available:
Projected Benefit Obligation($ in millions)
Balance, January 1, 2021 $500
Service cost 52
Interest cost, discount rate, 5% 25
Gain due to changes in actuarial assumptions in 2021 (9)
Pension benefits paid (25)
Balance, December 31, 2021 $543
Plan Assets($ in millions)
Balance, January 1, 2021 $580
Actual return on plan assets 35 (Expected return on plan assets, $40)
Cash contributions 76
Pension benefits paid (25)
Balance, December 31, 2021 $666
January 1, 2021, balances:($ in millions)
Pension asset$80
Prior service cost-AOCI (amortization $8 per year) 40
Net gain-AOCI (any amortization over 10 years) 98
Required:
Problem 1: Explain a pension spreadsheet to show the relationship among the PBO, plan assets, prior service cost, the net gain, pension expense, and the net pension asset. (Enter credit amounts with a minus sign and debit amounts with a positive sign. Enter your answers in millions.)
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