Question
Actuary and trustee reports indicate the following changes in the PBO and plan assets of Douglas-Roberts Industries during 2016: Prior service cost at Jan. 1,
Actuary and trustee reports indicate the following changes in the PBO and plan assets of Douglas-Roberts Industries during 2016: |
Prior service cost at Jan. 1, 2016, from plan amendment at the | |||
beginning of 2013 (amortization: $3 million per year) | $ | 21 | million |
Net lossAOCI at Jan.1, 2016 (previous losses exceeded previous gains) | $ | 84 | million |
Average remaining service life of the active employee group | 10 | years | |
Actuary's discount rate | 7 | % | |
($ in millions) | Plan | ||||||||||||||||
PBO | Assets | ||||||||||||||||
Beginning of 2016 | $ | 520 | Beginning of 2016 | $ | 320 | ||||||||||||
Service cost | 42 | Return on plan assets, | |||||||||||||||
8% (10% expected) | 25.6 | ||||||||||||||||
Interest cost, 7% | 36.4 | ||||||||||||||||
Loss (gain) on PBO | (16 | ) | Cash contributions | 92 | |||||||||||||
Less: Retiree benefits | (26 | ) | Less: Retiree benefits | (26 | ) | ||||||||||||
End of 2016 | $ | 556.4 | End of 2016 | $ | 411.6 | ||||||||||||
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started