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Problem 17-12 (Algo) Determine pension expense; journal entries; two years [LO17-3, 17-4, 17-5, 17-6, 17- 7, 17-8] The Kollar Company has a defined benefit
Problem 17-12 (Algo) Determine pension expense; journal entries; two years [LO17-3, 17-4, 17-5, 17-6, 17- 7, 17-8] The Kollar Company has a defined benefit pension plan. Pension information concerning the fiscal years 2021 and 2022 are presented below ($ in millions): Information Provided by Pension Plan Actuary: a. Projected benefit obligation as of December 31, 2020 = $3,950. b. Prior service cost from plan amendment on January 2, 2021 = $850 (straight-line amortization for 10-year average remaining service period). c. Service cost for 2021 = $690. d. Service cost for 2022 $740. e. Discount rate used by actuary on projected benefit obligation for 2021 and 2022 = 10% f. Payments to retirees in 2021 - $550. g. Payments to retirees in 2022 = $620. h. No changes in actuarial assumptions or estimates. 1. Net gain-AOCI on January 1, 2021 = $465. j. Net gains and losses are amortized for 10 years in 2021 and 2022.
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