Exercise 17-10 Determine pension expense (LO17-6, 17-7] 1 Abbott and Abbott has a noncontributory, defined benefit pension plan. At December 31, 2018, Abbott and Abbott received the following information: 3 points ($ in millions) $125 Projected Benefit Obligation Balance, January 1 Service cost Interest cost Benefits paid Balance, December 31 39 10 (8) $166 Print $ 75 Plan Assets Balance, January 1 Actual return on plan assets Contributions 2018 Benefits paid Balance, December 31 39 (8) $114 The expected long-term rate of return on plan assets was 8%. There was no prior service cost and a negligible net loss-AOCI on January 1, 2018 Required: 1. Determine Abbott and Abbott's pension expense for 2018. 2. Prepare the journal entries to record Abbott and Abbott's pension expense, funding, and payment for 2018. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine Abbott and Abbott's pension expense for 2018. Pension expense million Pension data for Barry Financial Services Inc. include the following: 2 ($ in 2005) $360 3 points Discount rate, 7% Expected return on plan assets, 12% Actual return on plan assets, 11% Service cost, 2018 January 1, 2018: Projected benefit obligation Accumulated benefit obligation Plan assets (fair value) Prior service cost-AOCI (2018 amortization, $50) Net gain-AOCI (2018 amortization, $8) There were no changes in actuarial assumptions. December 31, 2018: Cash contributions to pension fund, December 31, 2018 Benefit payments to retirees, December 31, 2018 2,550 2,250 2,650 350 380 Print 295 320 Required: 1. Determine pension expense for 2018. 2. Prepare the journal entries to record pension expense, gains and losses (if any), funding, and retiree benefits for 2018. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine pension expense for 2018. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands rounded to 1 decimal place (i.e., 5,500 should be entered as 5.5).) Pension Expense Pension expense Lacy Construction has a noncontributory, defined benefit pension plan. At December 31, 2018, Lacy received the following information: 3 Projected Benefit Obligation Balance, January 1 Service cost Prior service cost Interest cost(5.0%) Benefits paid Balance, December 31 ($ in millions) $ 560 80 32 28 (87) $ 613 3 points Print Plan Assets Balance, January 1 Actual return on plan assets Contributions 2018 Benefits paid Balance, December 31 ($ in millions) $ 430 45 80 (87) $ 468 The expected long-term rate of return on plan assets was 10%. There were no AOCI balances related to pensions on January 1, 2018. At the end of 2018, Lacy amended the pension formula creating a prior service cost of $32 million. Required: 1. Determine Lacy's pension expense for 2018. 2. Prepare the journal entry(s) to record Lacy's pension expense, gains or losses, prior service cost, funding, and payment of retiree benefits for 2018 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine Lacy's pension expense for 2018. Pension expense million Data pertaining to the postretirement health care benefit plan of Sterling Properties include the following for 2018: 4 ($ in 00s) $ 158 1,100 80 none 111 99 255 Service cost Accumulated postretirement benefit obligation, January 1 Plan assets (fair value), January 1 Prior service cost-AOCI Net gain-AOCI (2018 amortization, $1) Retiree benefits paid (end of year) Contribution to health care benefit fund (end of year) Discount rate, 7% Return on plan assets (actual and expected), 10% 3 polnts Print Required: 1. Determine the postretirement benefit expense for 2018. 2. Prepare the appropriate journal entries to record the postretirement benefit expense, funding, and retiree benefits for 2018. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the postretirement benefit expense for 2018. (Amounts to be deducted should be indicated with a minus sign.) ($ in 000s) Postretirement benefit expense O 5 Gorky-Park Corporation provides postretirement health care benefits to employees who provide at least 12 years of service and reach age 62 while in service. On January 1, 2018, the following plan-related data were available: ($ in millions) $ 140 None 3 points Accumulated postretirement benefit obligation Fair value of plan assets Average remaining service period to retirement Average remaining service period to full eligibility 25 years (same in previous 10 yrs.) 20 years (same in previous 10 yrs.) Print On January 1, 2018, Gorky-Park amends the plan to provide certain dental benefits in addition to previously provided medical benefits. The actuary determines that the cost of making the amendment retroactive increases the APBO by $30 million. Management chooses to amortize the prior service cost on a straight-line basis. The service cost for 2018 is $45 million. The interest rate is 9%. Required: 1. Calculate the postretirement benefit expense for 2018. 2. Prepare the journal entry to record the expense. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the postretirement benefit expense for 2018. ($ in millions) Postretirement benefit expense