Question
42. Wainright Co.s Pension expense for the year included the following ($ in millions): service cost, $40; interest costs, $24; expected return on assets, $16;
42. Wainright Co.s Pension expense for the year included the following ($ in millions): service cost, $40; interest costs, $24; expected return on assets, $16; amortization of net loss, $8; amortization of prior service cost, $12. The aggregate journal entry recorded at year-end to record the annual pension expense will not include: A. a credit to PBO for $64. B. a debit to Plan Assets for $16. C. a credit to Service Cost for $40. D. a debit to the Pension Expense for $68.
45. A companys postretirement health care benefit plan had a APBO of $225,000 on January 1, 2021. During 2021, retiree benefits paid were $36,000. The discount rate for the plan for this year was 10%. Service cost for 2021 was $76,000. Plan assets (fair value) increased during the year by $38,600. The amount of the APBO at December 31, 2021, was: A. $287,500. B. $189,000. C. $261,000. D. $323,500.
At December 31, 2018, Shawn, Inc. reported in its balance sheet a net loss of $3 million related to its pension plan. At the end of 2018, the actuary for Shawn increased her estimate of future salary levels to estimate the PBO. Shawn's entry to record the effect of this change would include: A. a debit to Loss-OCI and a credit to PBO. B. a debit to PBO and a credit to Loss-OCI. C. a debit to Pension Expense and a credit to PBO. D. a debit to PBO and a credit to Gain-OCI. 44. Accounting for postretirement health care benefits is similar, in most respects, to accounting for: A. Payroll taxes. B. Health insurance costs for current employees. C. Pension benefits. D. Sick pay and vacation pay.
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