Electronic Distribution has a defined benefit pension plan. Characteristics of the plan during 2018 are...
70.2K
Verified Solution
Link Copied!
Question
Accounting
Electronic Distribution has a defined benefit pension plan. Characteristics of the plan during 2018 are as follows:
($ millions)
PBO balance, January 1
$
460
Plan assets balance, January 1
250
Service cost
65
Interest cost
35
Gain from change in actuarial assumption
22
Benefits paid
(32)
Actual return on plan assets
22
Contributions 2018
55
The expected long-term rate of return on plan assets was 10%. There were no AOCI balances related to pensions on January 1, 2018, but at the end of 2018, the company amended the pension formula creating a prior service cost of $11 million. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) Required:
1. Calculate the pension expense for 2018. 2. Prepare the journal entry to record pension expense, gains or losses, prior service cost, funding, and payment of benefits for 2018. 3. What amount will Electronic Distribution report in its 2018 balance sheet as a net pension asset or net pension liability?
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
