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Electronic Distribution has a defined benefit pension plan. Characteristics of the plan during 2024 are as follows: ($ millions) PBO balance, January 1 $490 Plan

Electronic Distribution has a defined benefit pension plan. Characteristics of the plan during 2024 are as follows:

($ millions)
PBO balance, January 1 $490
Plan assets balance, January 1 400
Service cost 80
Interest cost 50
Gain from change in actuarial assumption 28
Benefits paid (38)
Actual return on plan assets 34
Contributions 2024 70

The expected long-term rate of return on plan assets was 10%. There were no AOCI balances related to pensions on January 1, 2024, but at the end of 2024, the company amended the pension formula, creating a prior service cost of $14 million.

Required:

  1. Calculate the pension expense for 2024.
  2. image text in transcribed
  3. Prepare the journal entries to record (a) pension expense, (b) gains or losses, (c) prior service cost, (d) funding, and (e) payment of benefits for 2024.

Record the pension expense.

Record gain or loss on PBO.

Record gain or loss on plan assets.

Record the prior service cost.

Record the funding.

Record the payment of benefits.

3. What amount will Electronic Distribution report in its 2024 balance sheet as a net pension asset or net pension liability?

\begin{tabular}{|l|l|} \hline \multicolumn{2}{|c|}{ Pension Expense } \\ \hline Service cost & \\ \hline Interest cost & \\ \hline Expected return on plan assets & \\ \hline Amortization of prior service cost & \\ \hline Amortization of net gain or net loss-AOCI & \\ \hline Pension expense & $ \\ \hline \end{tabular}

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