Exercise 17-6 Changes in the pension obligation; determine service cost [LO17-3, 17-6]

Pension data for Millington Enterprises include the following:

($ in millions)

Discount rate, 10%

Projected benefit obligation, January 1 $ 350

Projected benefit obligation, December 31 540

Accumulated benefit obligation, January 1 375

Accumulated benefit obligation, December 31 490

Cash contributions to pension fund, December 31 225

Benefit payments to retirees, December 31 69

Required:

Assuming no change in actuarial assumptions and estimates, determine the service cost component of pension expense for the year ended December 31.

What is the service cost?