Question
Millions 2016 Projected Benefit Obligation Projected benefit obligation at beginning of year $ 3,958 Service cost 84 Interest cost 143 Actuarial loss/(gain) 124 Gross benefits
| Millions | 2016 | |
| Projected Benefit Obligation |
|
|
| Projected benefit obligation at beginning of year | $ | 3,958 |
| Service cost |
| 84 |
| Interest cost |
| 143 |
| Actuarial loss/(gain) |
| 124 |
| Gross benefits paid |
| (199) |
| Projected benefit obligation at end of year | $ | 4,110 |
| Plan Assets |
|
|
| Fair value of plan assets at beginning of year | $ | 3,544 |
| Actual return/(loss) on plan assets |
| 279 |
| Voluntary funded pension plan contributions |
| 100 |
| Non-qualified plan benefit contributions |
| 24 |
| Gross benefits paid |
| (199) |
| Fair value of plan assets at end of year | $ | 3,748 |
a. How much retirement benefits did former employees receive during the year?
b. What rate did Union Pacific s pension assets actually earn during 2016?
c. What average rate did Union Pacific use to calculate interest cost during 2016?
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Forensic And Investigative Accounting
Authors: D. Larry Crumbley
3rd Edition
0808017233, 9780808017233
