Douglas-Robert, Inc. has a noncontributory, defined benefit pension plan. At December 31, 2022, Douglas-Robert received...
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Douglas-Robert, Inc. has a noncontributory, defined benefit pension plan. At December 31, 2022, Douglas-Robert received the following information:Projected Benefit Obligation
($ in millions)
Balance, January 1 $ 150
Service cost 34
Interest cost 15
Benefits paid (9 )
Balance, December 31 $ 190
Plan AssetsBalance, January 1 $ 60
Actual return on plan assets 8Contributions 2021 34
Benefits paid (9 )
Balance, December 31 $ 93
The expected long-term rate of return on plan assets was 10%. There was no prior service cost and a negligible net lossAOCI on January 1, 2022.Required:
1. Determine Douglas-Roberts pension expense for 2022.
2. Prepare the journal entries to record Doublas Roberts (a) pension expense, (b) funding, and (c) payment of retiree benefits in 2022.Enter your answers in millions (i.e., 5,000,000 should be entered as 5).
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