Question
Pension data for David Emerson Enterprises include the following: ($ in millions) Discount rate, 10% Projected benefit obligation, January 1 $ 400 Projected benefit obligation,
Pension data for David Emerson Enterprises include the following:
| ($ in millions) | |||
| Discount rate, 10% | |||
| Projected benefit obligation, January 1 | $ | 400 | |
| Projected benefit obligation, December 31 | 505 | ||
| Accumulated benefit obligation, January 1 | 340 | ||
| Accumulated benefit obligation, December 31 | 455 | ||
| Cash contributions to pension fund, December 31 | 190 | ||
| Benefit payments to retirees, December 31 | 62 | ||
Required: Assuming no change in actuarial assumptions and estimates, determine the service cost component of pension expense for the year ended December 31.
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Financial Accounting An Integrated Statements Approach
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
2nd Edition
324312113, 978-0324312119
