Req 1A Req 18 and 2 to 4 Determine Douglas-Roberts's pension expense for 2021. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) Pension Expense Pension expense < Reg 1A Reg 1B and 2 to 2 to 4
Req 1A Req 18 and 2 to 4 Determine Douglas-Roberts's pension expense for 2021. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) Pension Expense Pension expense < Reg 1A Reg 1B and 2 to 2 to 4
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 10P
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Transcribed Image Text:Actuary and trustee reports indicate the following changes in the PBO and plan assets of Douglas-Roberts Industries during 2021:
Prior service cost at Jan. 1, 2021, from plan amendment at the
beginning of 2018 (amortization: $5 million per year)
Net loss-AOCI at Jan.1, 2021 (previous losses exceeded previous gains)
Average remaining service life of the active employee group
Actuary's discount rate
($ in millions)
Beginning of 2821
Service cost
Interest cost, 7%
Loss (gain) on PBO
Less: Retiree benefits
End of 2021
PBO
Req 1A
$ 800
58
Req 18 and 2
to 4
56
(13)
(34)
Pension expense
$ 867
Plan
Assets
Beginning of 2021.
Return on plan assets,
8% (10% expected)
Complete this question by entering your answers in the tabs below.
Cash contributions
Less: Retiree benefits
End of 2021
$ 600
Required:
1-a. Determine Douglas-Roberts's pension expense for 2021.
1-b, 2. to 4. Prepare the appropriate Journal entries to record the pension expense, to record any 2021 gains and losses, to record the
cash contribution to plan assets and to record retiree benefits.
48
< Req 1A
100
(34)
$714
Determine Douglas-Roberts's pension expense for 2021. (Amounts to be deducted should be indicated with a minus sign.
Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)
Pension Expense
$35 million
$180 million
10 years
7%
Req 1B and 2 to 4 >
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