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Beale Management has a noncontributory, defined benefit pension plan. On December 31, 2021 (the end of Beale's fiscal year), the following pension-related data were available:
Beale Management has a noncontributory, defined benefit pension plan. On December 31, 2021 (the end of Beale's fiscal year), the following pension-related data were available:
Projected Benefit Obligation | ($ in millions) | ||||
Balance, January 1, 2021 | $ | 600 | |||
Service cost | 62 | ||||
Interest cost, discount rate, 5% | 30 | ||||
Gain due to changes in actuarial assumptions in 2021 | (14 | ) | |||
Pension benefits paid | (30 | ) | |||
Balance, December 31, 2021 | $ | 648 | |||
Plan Assets | ($ in millions) | ||||
Balance, January 1, 2021 | $ | 620 | |||
Actual return on plan assets | 40 | ||||
(Expected return on plan assets, $45) | |||||
Cash contributions | 81 | ||||
Pension benefits paid | (30 | ) | |||
Balance, December 31, 2021 | $ | 711 | |||
January 1, 2021, balances: | ($ in millions) | ||
Pension asset | $ | 20 | |
Prior service costAOCI (amortization $6 per year) | 30 | ||
Net gainAOCI (any amortization over 10 years) | 112 | ||
Required: Prepare a pension spreadsheet to show the relationship among the PBO, plan assets, prior service cost, the net gain, pension expense, and the net pension asset. (Enter credit amounts with a minus sign and debit amounts with a positive sign. Enter your answers in millions.)
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