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Abbott and Abbott has a noncontributory, defined benefit pension plan. At December 31, 2018, Abbott and Abbott received the following information: Projected Benefit Obligation ($
Abbott and Abbott has a noncontributory, defined benefit pension plan. At December 31, 2018, Abbott and Abbott received the following information:
Projected Benefit Obligation | ($ in millions) | ||||
Balance, January 1 | $ | 125 | |||
Service cost | 37 | ||||
Interest cost | 15 | ||||
Benefits paid | (11 | ) | |||
Balance, December 31 | $ | 166 | |||
Plan Assets | |||||
Balance, January 1 | $ | 100 | |||
Actual return on plan assets | 14 | ||||
Contributions 2018 | 37 | ||||
Benefits paid | (11 | ) | |||
Balance, December 31 | $ | 140 | |||
The expected long-term rate of return on plan assets was 12%. There was no prior service cost and a negligible net lossAOCI on January 1, 2018. Required: 1. Determine Abbott and Abbotts pension expense for 2018. 2. Prepare the journal entries to record Abbott and Abbotts pension expense, funding, and payment for 2018.
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