Pension data for Millington Enterprises include the following: Required: Assumin

Question

Pension data for Millington Enterprises include the following:

Required:
Assuming no change in actuarial assumptions and estimates, determine the service cost component of pension expense for the year ended December 31.

($ in millions) Discount rate, 10% Projected benefit obligation, January 1 $ 340 Projected benefit obligation, December 31 480 Accumulated benefit obligation, January 1 315 Accumulated benefit obligation, December 31 430 Cash contributions to pension fund, December 31 165 Benefit payments to retirees, December 31 57

Explanation / Answer

Service cost component of pension expense = 480-340-(340*10%)+57= $163 million

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.