Pension data for David Emerson Enterprises Include the following: Discount rate, 12% Projected benefit obligation, January 1 Projected benefit obligation, December 31 Accumulated benefit obligation, January 1 Accumulated benefit obligation, December 31 Cash contributions to pension fund, December 31 Benefit payments to retirees, December 31 Service cost ($ in millions) $300 470 million 305 420 155 Required: Assuming no change in actuarial assumptions and estimates, determine the service cost component of pension expense for the year ended December 31. 55

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter19: Accounting For Post Retirement Benefits
Section: Chapter Questions
Problem 1E
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Pension data for David Emerson Enterprises Include the following:
Discount rate, 12%
Projected benefit obligation, January 1
Projected benefit obligation, December 31
Accumulated benefit obligation, January 1
Accumulated benefit obligation, December 31
Cash contributions to pension fund, December 31
Benefit payments to retirees, December 31
Service cost
($ in millions)
million
$300
470
Required:
Assuming no change in actuarial assumptions and estimates, determine the service cost component of pension expense for the year
ended December 31.
305
420
155
55
Transcribed Image Text:Pension data for David Emerson Enterprises Include the following: Discount rate, 12% Projected benefit obligation, January 1 Projected benefit obligation, December 31 Accumulated benefit obligation, January 1 Accumulated benefit obligation, December 31 Cash contributions to pension fund, December 31 Benefit payments to retirees, December 31 Service cost ($ in millions) million $300 470 Required: Assuming no change in actuarial assumptions and estimates, determine the service cost component of pension expense for the year ended December 31. 305 420 155 55
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