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I already have the answer to A. And G. 0.39. Analyzing and Interpreting Pension Footnote-Funded and Reported Amounts Johnson and Johnson reports the following pension
I already have the answer to A. And G.
0.39. Analyzing and Interpreting Pension Footnote-Funded and Reported Amounts Johnson and Johnson reports the following pension footnote as part of its 2014 10-K rep rt. Pension Benefits 2014 in millions) Change in Benefit Obligation Projected benefit obligation-beginning of year Service cost. . Interest cost . Plan participant contributions Amendments . Actuarial (gains) losses. Divestitures and acquisitions $21,488 882 1,018 59 (60) 5,395 (121) (53) (813) (906) Benefits paid from plan Effect of exchange rates. Projected benefit obligation-end of year $26,889 in millions) 2014 Change in Plan Assets Plan assets at fair value-beginning of year Actual return on plan assets. Company contributions . $20,901 2,078 1,176 59 (40) (109) (813) (677) . . Settlements Benefits paid from plan assets.......... Plan assets at fair value-end of year Funded status-end of year . . .. $22,575 .. $ (4,314) a. Describe what is meant by service cost and interest cost b. What is the actual return on pension investments in 2014? c. Provide an example under which an "actuarial loss," such as the $5,395 million loss that Johnson and Johnson reports in 2014, might arise. What is the source of funds to make payments to retirees? d. e. How much cash did Johnson and Johnson contribute to its pension plans in 2014? f. How much cash did the company pay to retirees in 2014? g. Show the computation of its 2014 funded status. h. What net pension amount is reported on its 2014 balance sheet Step by Step Solution
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