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-Record Pension Expense for 2016 and 2017. -Record gains and losses in 2016. -Record new prior service cost in 2016. -Record gains and losses in
-Record Pension Expense for 2016 and 2017.
-Record gains and losses in 2016.
-Record new prior service cost in 2016.
-Record gains and losses in 2017.
-Record the cash contribution to plan assets in 2016
-Record the cash contribution to plan assets in 2017
-Record benefit payments to retirees in 2016
-Record benefit payments to retirees in 2017
The Kollar Company has a defined benefit pension plan. Pension information concerning the fiscal years 2016 and 2017 are presented below in millions): Information Provided by Pension Plan Actuary: a. Projected benefit obligation as of December 31, 2015 $3,500. b. Prior service cost from plan amendment on January 2, 2016 $700 (straight-line amortization fo 10-year average remaining service period) c. Service cost for 2016 $660. d. Service cost for 2017 $710. e. Discount rate used by actuary on projected benefit obligation for 2016 and 2017 10%. f. Payments to retirees in 2016 $520. g. Payments to retirees in 2017 $590 h. No changes in actuarial assumptions or estimates i. Net gain-AOCI on January 1, 2016 $380. j. Net gains and losses are amortized for 10 years in 2016 and 2017 Information Provided by Pension Fund Trustee a. Plan asset balance at fair value on January 1, 2016 $2,500. b. 2016 contributions $680. c. 2017 contributions $730. d. Expected long-term rate of return on plan assets 12% e. 2016 actual return on plan assets $230. f. 2017 actual return on plan assets $280. Required: 1. Calculate pension expense for 2016 and 2017. (Do not round intermediate calculations. Enter your answers in millions rounded to 1 decimal place e., 5,500,000 should be entered as 5.50.) in millions) 2016 2017 Pension expenseStep by Step Solution
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