[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: $6 million per year) Net loss-pensions at Jan.1, 2021 (previous losses exceeded previous gains) Average remaining service life of the active employee group Actuary's discount rate $50 million $60 million 10 years 8% ($ in millions) PBO Plan Assets $360 Beginning of 2021 Service cost Interest cost, 8% Loss (gain) on PBO Less: Retiree benefits End of 2021 $500 66 40 (4) (52) $550 Beginning of 2021 Return on plan assets, 7.5% (10% expected) Cash contributions Less: Retiree benefits End of 2021 27 65 (52) $400 Assume the following actuary and trustee reports indicating changes in the PBO and plan assets Lakeside Cable during 2022: ($ in millions) Plan PBO Assets $400 Beginning of 2022 Service cost Interest cost, 8% Loss (gain) on PBO Less: Retiree benefits End of 2022 $550 56 44 5 (34) $ 621 Beginning of 2022 Return on plan assets, 17% (10% expected) Cash contributions Less: Retiree benefits End of 2022 68 48 (34) $482 3. Prepare a pension spreadsheet to assist you in determining end of 2021 balances in the PBO, plan assets, prior service cost-AOCI, the net lossAOCI, and the pension liability. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Enter credit amounts with a minus sign and debit amounts with a positive sign.) ($ in millions) PBO Plan Assets Prior Service Cost-AOCI Net Loss -AOCI Pension Expense Cash Net Pension (Liability) Asset Bal., Jan. 1, 2021 Service cost Interest cost, 8% Expected return on assets Loss on assets Amortization of Prior service cost-AOCI Net loss-AOCI Gain on PBO Cash contributions Retiree benefits Bal., Dec. 31, 2021 0 0 0 0 0 [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: $6 million per year) Net loss-pensions at Jan.1, 2021 (previous losses exceeded previous gains) Average remaining service life of the active employee group Actuary's discount rate $50 million $60 million 10 years 8% ($ in millions) PBO Plan Assets $360 Beginning of 2021 Service cost Interest cost, 8% Loss (gain) on PBO Less: Retiree benefits End of 2021 $500 66 40 (4) (52) $550 Beginning of 2021 Return on plan assets, 7.5% (10% expected) Cash contributions Less: Retiree benefits End of 2021 27 65 (52) $400 Assume the following actuary and trustee reports indicating changes in the PBO and plan assets Lakeside Cable during 2022: ($ in millions) Plan PBO Assets $400 Beginning of 2022 Service cost Interest cost, 8% Loss (gain) on PBO Less: Retiree benefits End of 2022 $550 56 44 5 (34) $ 621 Beginning of 2022 Return on plan assets, 17% (10% expected) Cash contributions Less: Retiree benefits End of 2022 68 48 (34) $482 3. Prepare a pension spreadsheet to assist you in determining end of 2021 balances in the PBO, plan assets, prior service cost-AOCI, the net lossAOCI, and the pension liability. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Enter credit amounts with a minus sign and debit amounts with a positive sign.) ($ in millions) PBO Plan Assets Prior Service Cost-AOCI Net Loss -AOCI Pension Expense Cash Net Pension (Liability) Asset Bal., Jan. 1, 2021 Service cost Interest cost, 8% Expected return on assets Loss on assets Amortization of Prior service cost-AOCI Net loss-AOCI Gain on PBO Cash contributions Retiree benefits Bal., Dec. 31, 2021 0 0 0 0 0
