Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Actuary and trustee reports indicate the following changes in the PBO and plan assets of Lakeside Cable during 2 0 2 1 : Prior service

Actuary and trustee reports indicate the following changes in the PBO and plan assets of Lakeside Cable during 2021: Prior service cost at Jan. 1,2021, from plan amendment at thebeginning of 2019(amortization: $5 million per year) $ 39 millionNet loss-pensions at Jan.1,2021(previous losses exceeded previous gains) $ 47 millionAverage remaining service life of the active employee group 10 yearsActuarys discount rate 10%($ in millions) PBO PlanAssetsBeginning of 2021 $ 370 Beginning of 2021 $ 200 Service cost 49 Return on plan assets, Interest cost, 10%379.5%(10% expected)19 Loss (gain) on PBO (3) Cash contributions 64 Less: Retiree benefits (33) Less: Retiree benefits (33) End of 2021 $ 420 End of 2021 $ 250 Assume the following actuary and trustee reports indicating changes in the PBO and plan assets of Lakeside Cable during 2022:($ in millions) PBO PlanAssetsBeginning of 2022 $ 420 Beginning of 2022 $ 250 Service cost 45 Return on plan assets, Interest cost, 10%4216%(10% expected)40 Loss (gain) on PBO 5 Cash contributions 37 Less: Retiree benefits (23) Less: Retiree benefits (23) End of 2022 $ 489 End of 2022 $ 3046. Using T-accounts, determine the balances at December 31,2022, in the net lossAOCI and prior service costAOCI.(Enter your answers in millions rounded to 1 decimal place (i.e.,5,500,000 should be entered as 5.5).)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Glencoe Accounting Concepts Procedures Applicatons

Authors: McGraw-Hill Education

3rd Edition

0028036174, 978-0028036175

More Books

Students also viewed these Accounting questions