Assignment 1

Major Medical reported a net lossAOCI in last years balance sheet. This year, the company revised its estimate of future salary levels causing its PBO estimate to decline by $8 million. Also, the $14 million actual return on plan assets fell short of the $18 million expected return.

How does this gain and loss affect Majors income statement, statement of comprehensive income, and balance sheet?

Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10).

Assignment 2

Prince Distribution Incorporated has an unfunded postretirement benefit plan. Medical care and life insurance benefits are provided to employees who render 10 years service and attain age 55 while in service. At the end of 2024, Jim Lukawitz is 36. He was hired by Prince at age 29 (7 years ago) and is expected to retire at age 61. The expected postretirement benefit obligation for Lukawitz at the end of 2024 is $48,000 and $54,000 at the end of 2025.

Calculate the accumulated postretirement benefit obligation at the end of 2024 and 2025 and the service cost for 2024 and 2025, as pertaining to Lukawitz.

Note: Enter your answers in whole dollar amount. Round your final answers to the nearest whole dollar