Question
Abbott and Abbott has a noncontributory, defined benefit pension plan. At December 31, 2021, Abbott and Abbott received the following information: Projected Benefit Obligation ($
Abbott and Abbott has a noncontributory, defined benefit pension plan. At December 31, 2021, Abbott and Abbott received the following information: Projected Benefit Obligation ($ in millions) Balance, January 1 $ 200 Service cost 33 Interest cost 22 Benefits paid (11 ) Balance, December 31 $ 244 Plan Assets Balance, January 1 $ 100 Actual return on plan assets 12 Contributions 2021 33 Benefits paid (11 ) Balance, December 31 $ 134 The expected long-term rate of return on plan assets was 11%. There was no prior service cost and a negligible net lossAOCI on January 1, 2021. Required: 1. Determine Abbott and Abbotts pension expense for 2021. 2. Prepare the journal entries to record Abbott and Abbotts (a) pension expense, (b) funding, and (c) payment for 2021.
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