Abbott and Abbott has a noncontributory, defined benefit pension plan. At Decemb

Question

Abbott and Abbott has a noncontributory, defined benefit pension plan. At December 31, 2016, Abbott and Abbott received the following information:

Abbott and Abbott has a noncontributory, defined benefit pension plan. At December 31, 2016, Abbott and Abbott received the following information:

Abbott and Abbott has a noncontributory, defined benefit pension plan. At December 31, 2016, Abbott and Abbott received the following information (S in millions) Projected Benefit Obligation $125 25 Balance, January 1 Service cost Interest cost Benefits paid Balance, December 31 $152 Plan Assets Balance, January 1 Actual return on plan assets Contributions 2016 Benefits paid $ 75 8 25 Balance, December 31 $100 The expected long-term rate of return on plan assets was 8%. There was no prior service cost and a negligible net loss-AOCI on January 1, 2016 Required 1. Determine Abbott and Abbott's pension expense for 2016 Pension expense S 27 million 2. Prepare the journal entries to record Abbott and Abbott's pension expense, funding, and payment for 2016. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

Explanation / Answer

Plan Assets for 2016.

Projected benefit Obligation for 2016. Particulars $(in Millions) Projected Benefit Obligation as at 1/1/16 $125 Service Cost $25 Interest Cost $10 Benefits Paid -$8 Projected Benefit Obligation as at 31/12/16 $152

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