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Problem 17-16 Comprehensive-reporting a pension plan; pension spreadsheet; determine changes in balances; two years [LO17-3, 17-4, 17-5, 17-6, 17-7, 17-8]

[The following information applies to the questions displayed below.] Actuary and trustee reports indicate the following changes in the PBO and plan assets of Lakeside Cable during 2018:

Prior service cost at Jan. 1, 2018, from plan amendment at the beginning of 2016 (amortization: $6 million per year)	$	50	million
Net losspensions at Jan.1, 2018 (previous losses exceeded previous gains)	$	60	million
Average remaining service life of the active employee group		10	years
Actuarys discount rate		8	%

($ in millions)

	PBO				Plan Assets
Beginning of 2018	$	500		Beginning of 2018		$	360
Service cost		66		Return on plan assets,
Interest cost, 8%		40		7.5% (10% expected)			27
Loss (gain) on PBO		(4	)	Cash contributions			65
Less: Retiree benefits		(52	)	Less: Retiree benefits			(52	)
End of 2018	$	550		End of 2018		$	400

Problem 17-16 Part 7

7. Prepare a pension spreadsheet to assist you in determining end of 2018 balances in the PBO, plan assets, prior service costAOCI, the net lossAOCI, and the pension liability. (Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). Enter credit amounts with a minus sign and debit amounts with a positive sign.)

Answer is complete but not entirely correct.

($ in millions) PBO Plan Assets Prior Service CostAOCI Net Loss AOCI Pension Expense Cash Net Pension (Liability) / Asset Bal., Jan. 1, 2019 (500)selected answer incorrect 360selected answer incorrect 50selected answer incorrect 60selected answer incorrect not attempted not attempted (140)selected answer incorrect Service cost (66)selected answer incorrect not attempted not attempted not attempted 66selected answer incorrect not attempted (66)selected answer incorrect Interest cost, 8% (40)selected answer incorrect not attempted not attempted not attempted 40selected answer incorrect not attempted (40)selected answer incorrect Expected return on assets not attempted 36selected answer incorrect not attempted not attempted (36)selected answer incorrect not attempted 36selected answer incorrect Gain on assets not attempted 4selected answer incorrect not attempted (4)selected answer incorrect not attempted not attempted 4selected answer incorrect Amortization of: Prior service costAOCI not attempted not attempted (6)selected answer correct not attempted 6selected answer correct not attempted not attempted Net lossAOCI not attempted not attempted not attempted (1.0)selected answer incorrect 1.0selected answer incorrect not attempted not attempted Loss on PBO 4selected answer incorrect not attempted not attempted (4)selected answer incorrect not attempted not attempted 4selected answer incorrect Cash contributions not attempted 65selected answer incorrect not attempted not attempted not attempted (65)selected answer incorrect 65selected answer incorrect Retiree benefits 52selected answer incorrect (52)selected answer incorrect not attempted not attempted not attempted not attempted not attempted Bal., Dec. 31, 2019 (550) 413 44 51.0 77.0 (137)

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