Beale Management has a noncontributory, defined benefit pension plan. On December 31, 2024 (the end...
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Accounting
Beale Management has a noncontributory, defined benefit pension plan. On December 31, 2024 (the end of Beale's fiscal year), the following pension-related data were available:
Projected Benefit Obligation
($ in millions)
Balance, January 1, 2024
$ 600
Service cost
62
Interest cost, discount rate, 5%
30
Gain due to changes in actuarial assumptions in 2024
(14)
Pension benefits paid
(30)
Balance, December 31, 2024
$ 648
Plan Assets
($ in millions)
Balance, January 1, 2024
$ 620
Actual return on plan assets
40
(Expected return on plan assets, $45)
Cash contributions
81
Pension benefits paid
(30)
Balance, December 31, 2024
$ 711
January 1, 2024, balances:
($ in millions)
Pension asset
$ 20
Prior service costAOCI (amortization $6 per year)
30
Net gainAOCI (any amortization over 10 years)
112
Brepare 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. Note: Enter credit amounts with a minus sign and debit amounts with a positive sign. Enter your answers in millions (i.e., 0,000,000 should be entered as 10)
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