Question
6. Pension data for Millington Enterprises include the following: ($ in millions) .Discount rate, 10% Projected benefit obligation, January 1 $370 Projected benefit obligation, December
6. Pension data for Millington Enterprises include the following:
($ in millions)
.Discount rate, 10%
Projected benefit obligation, January 1 $370
Projected benefit obligation, December 31 475
Accumulated benefit obligation, January 1 310
Accumulated benefit obligation, December 31 425
Cash contributions to pension fund, December 31 160
Benefit payments to retirees, December 31 56
Required:
Assuming no change in actuarial assumptions and estimates, determine the service cost component of pension expense for the year ended December 31.
Service cost = ______________________ million
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