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Warrick Boards calculated pension expense for its underfunded pension plan as follows: ($ in millions) Service cost $ 354 Interest cost 215 Expected return on
Warrick Boards calculated pension expense for its underfunded pension plan as follows:
($ in millions) | |||||
Service cost | $ | 354 | |||
Interest cost | 215 | ||||
Expected return on the plan assets ($165 actual, less $11 gain) | (154 | ) | |||
Amortization of prior service cost | 21 | ||||
Amortization of net loss | 4 | ||||
Pension expense | $ | 440 | |||
Required: Which elements of Warricks balance sheet are affected by the components of pension expense? What are the specific changes in these accounts?
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