| A partially completed pension spreadsheet showing the relationships among the elements that constitute Carney, Inc.s defined benefit pension plan follows. Six years earlier, Carney revised its pension formula and recalculated benefits earned by employees in prior years using the more generous formula. The prior service cost created by |
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A partially completed pension spreadsheet showing the relationships among the elements that constitute Carney, Inc.'s defined benefit pension plan follows. Six years earlier, Carney revised its pension formula and recalculated benefits earned by employees in prior years using the more generous formula. The prior service cost created by the recalculation is being amortized at the rate of $5 million per year. At the end of 2016, the pension formula was amended again, creating an additional prior service cost of $35 million. The expected rate of return on assets and the actuary's discount rate were 10%, and the average remaining service life of the active employee group is 10 years. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) Required 1 il in the missing amounts. (Amounts to be deducted should be indicated with a minus sign.) s indicate credits: debits otherwise Prior Net Pension ($ in millions) PBO Plan Assets Service Net Loss- Pension Cash (Liability) Asset Cost-AOCI AOCI Expense (960) 850 106 Balance, Jan. 1, 2016 Service cost Interest cost Expected return on assets Adjust for: 20 96 Loss on assets (10) Amortization of Prior service cost Net loss Loss on PBO Prior service cost Cash funding Retiree benefits Bal., Dec. 31, 2016 91 (960) 800 20 106 96 (45) A partially completed pension spreadsheet showing the relationships among the elements that constitute Carney, Inc.'s defined benefit pension plan follows. Six years earlier, Carney revised its pension formula and recalculated benefits earned by employees in prior years using the more generous formula. The prior service cost created by the recalculation is being amortized at the rate of $5 million per year. At the end of 2016, the pension formula was amended again, creating an additional prior service cost of $35 million. The expected rate of return on assets and the actuary's discount rate were 10%, and the average remaining service life of the active employee group is 10 years. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) Required 1 il in the missing amounts. (Amounts to be deducted should be indicated with a minus sign.) s indicate credits: debits otherwise Prior Net Pension ($ in millions) PBO Plan Assets Service Net Loss- Pension Cash (Liability) Asset Cost-AOCI AOCI Expense (960) 850 106 Balance, Jan. 1, 2016 Service cost Interest cost Expected return on assets Adjust for: 20 96 Loss on assets (10) Amortization of Prior service cost Net loss Loss on PBO Prior service cost Cash funding Retiree benefits Bal., Dec. 31, 2016 91 (960) 800 20 106 96 (45)
