Exercise 17-10 Determine pension expense [LO17-6,17-7]

Abbott and Abbott has a noncontributory, defined benefit pension plan. At December 31, 2016, Abbott and Abbott received the following information:

	($ in millions)
Projected Benefit Obligation
Balance, January 1	$	150
Service cost		35
Interest cost		12
Benefits paid		(12	)
Balance, December 31	$	185
Plan Assets
Balance, January 1	$	75
Actual return on plan assets		8
Contributions 2016		35
Benefits paid		(12	)
Balance, December 31	$	106

The expected long-term rate of return on plan assets was 8%. There was no prior service cost and a negligible net lossAOCI on January 1, 2016.

Required:

1.	Determine Abbott and Abbotts pension expense for 2016.

2.	Prepare the journal entries to record Abbott and Abbotts pension expense, funding, and payment for 2016. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

First entry: Record the pension expense.

Pension expense

Plan Assets

PBO

Second entry: Record the plan assets funding.

Plan assets

Cash

Third entry: Record benefit payments.

PBO

Plan assets