Question
Harrison Forklift's pension expense includes a service cost of $11 million. Harrison began the year with a pension liability of $30 million (underfunded pension plan).
Harrison Forklift's pension expense includes a service cost of $11 million. Harrison began the year with a pension liability of $30 million (underfunded pension plan). ($ in millions)
Interest cost, $7; expected return on assets, $5; amortization of net loss, $2.
Interest cost, $7; expected return on assets, $5; amortization of net gain, $2.
Interest cost, $7; expected return on assets, $5; amortization of net loss, $2; amortization of prior service cost, $3.
Required:
Prepare the appropriate general journal entries to record Harrisons pension expense in each of the following independent situations regarding the other (non-service cost) components of pension expense.
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