Pension data for Millington Enterprises include the following: ($ in millions) Discount rate, 10% Projected benefit obligation, January

Question

Pension data for Millington Enterprises include the following: (in millions)

Discount rate: 10%  
Projected benefit obligation (PBO), January 1: $350  
Projected benefit obligation (PBO), December 31: $540  
Accumulated benefit obligation (ABO), January 1: $375  
Accumulated benefit obligation (ABO), December 31: $490  
Cash contributions to the pension fund, December 31: $225  
Benefit payments to retirees, December 31: $69

Required:
1. Assuming no changes in actuarial assumptions and estimates, calculate the service cost component of pension expense for the year ended December 31. What is the service cost?
2. JDS Foods’ pension data at the end of the year are as follows:
   - Projected benefit obligation (PBO): $80 million
   - Accumulated benefit obligation (ABO): $70 million
   - Plan assets: $56 million  
Based on this data, what pension liability, if any, must be reported on the balance sheet?
3. If JDS Foods’ plan assets were $100 million instead, how would the pension liability or asset be reported?

Anonymous · Accepted Answer

You can download answer herecutlnk.ml/0tj3C

Anonymous · Answer

fair value of plan assets over the accumulated postretirement benefit obligationExplanation:

Anonymous

Pension data for Millington Enterprises include the following: ($ in millions) Discount rate, 10% Projected benefit obligation, January

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