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Problem 17-16 (Static) Comprehensivereporting a pension plan; pension spreadsheet; determine changes in balances; two years [LO17-3, 17-4, 17-5, 17-6, 17-7, 17-8] Skip to question [The

Problem 17-16 (Static) Comprehensivereporting a pension plan; pension spreadsheet; determine changes in balances; two years [LO17-3, 17-4, 17-5, 17-6, 17-7, 17-8]

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[The following information applies to the questions displayed below.] Actuary and trustee reports indicate the following changes in the PBO and plan assets of Lakeside Cable during 2021:

Prior service cost at Jan. 1, 2021, from plan amendment at the beginning of 2019 (amortization: $4 million per year) $ 32 million
Net loss-pensions at Jan.1, 2021 (previous losses exceeded previous gains) $ 40 million
Average remaining service life of the active employee group 10 years
Actuarys discount rate 8 %

($ in millions)

PBO Plan Assets
Beginning of 2021 $ 300 Beginning of 2021 $ 200
Service cost 48
Interest cost, 8% 24 Return on plan assets, 7.5% (10% expected) 15
Loss (gain) on PBO (2 ) Cash contributions 45
Less: Retiree benefits (20 ) Less: Retiree benefits (20 )
End of 2021 $ 350 End of 2021 $ 240

Assume the following actuary and trustee reports indicating changes in the PBO and plan assets of Lakeside Cable during 2022: ($ in millions)

PBO Plan Assets
Beginning of 2022 $ 350 Beginning of 2022 $ 240
Service cost 38
Interest cost at 8% 28 Return on plan assets, 15% (10% expected) 36
Loss (gain) on PBO 5 Cash contributions 30
Less: Retiree benefits (16 ) Less: Retiree benefits (16 )
End of 2022 $ 405 End of 2022 $ 290

4-a. Determine Lakesides pension expense for 2019. (Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).)

4-b. Prepare the appropriate journal entries to record the expense, the cash funding of plan assets, and payment of benefits to retirees. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).)

2. Determine the new gains and/or losses in 2021 and prepare the appropriate journal entry(s) to record them. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

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