Question
. 7. Abbott and Abbott has a noncontributory, defined benefit pension plan. At December 31, 2018, Abbott received the following information: Projected Benefit Obligation ($
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7. Abbott and Abbott has a noncontributory, defined benefit pension plan. At December 31, 2018, Abbott received the following information:
Projected Benefit Obligation ($ in millions)
Balance, January $100
Service cost 21
Interest cost 10
Benefits paid (10)
Balance, December 31 $121
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Plan Assets
Balance, January 1 $ 80
Actual, return on plan assets 10
Contributions 2018 21
Benefits paid (10)
Balance, December 31 $101
The expected long-term rate of return on plan assets was 10%. There was no prior service cost and a negligible net lossAOCI on January 1, 2018.
Required:
- Determine Abbott and Abbotts pension expense for 2018.
- Prepare the journal entries record Abbott and Abbotts pension expense, funding, and payment for 2018.
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