AC 313

Exercise 17-14 Effect of pension expense components on balance sheet accounts [LO17-7, 17-8] Warrick Boards calculated pension expense for its underfunded pension plan as follows: Service cost Interest cost Expected return on the plan assets ($185 actual, less $15 gain) Amortization of prior service cost Amortization of net loss Pension expense $ in millions) $ 394 235 (170) 25 $ 489 Required: Which elements of Warrick's balance sheet are affected by the components of pension expense? What are the specific changes in these accounts? is in millions) by Liability Shareholder's equity increases decreases