3. Prepare a pension spreadsheet to assist you in determining end of 2024 balances in the PBO, plan assets, prior service cost-AOCI, the net loss-AOCI, and the pension liability. Note: 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) Balance, January 1, 2024 Service cost Interest cost, 8% Expected return on assets Loss on assets Amortization of: Prior service cost-AOCI Net loss-AOCI Gain or Loss on PBO Cash contributions Retiree benefits Balance, December 31, 2024 PBO (300) (48) (24) (372) Plan Assets 200 200 Answer is not complete. Prior Service Cost- AOCI 0 Net Loss -AOCI Pension Expense 48 24 72 Cash Net Pension (Liability) or Asset
3. Prepare a pension spreadsheet to assist you in determining end of 2024 balances in the PBO, plan assets, prior service cost-AOCI, the net loss-AOCI, and the pension liability. Note: 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) Balance, January 1, 2024 Service cost Interest cost, 8% Expected return on assets Loss on assets Amortization of: Prior service cost-AOCI Net loss-AOCI Gain or Loss on PBO Cash contributions Retiree benefits Balance, December 31, 2024 PBO (300) (48) (24) (372) Plan Assets 200 200 Answer is not complete. Prior Service Cost- AOCI 0 Net Loss -AOCI Pension Expense 48 24 72 Cash Net Pension (Liability) or Asset
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question

Transcribed Image Text:3. Prepare a pension spreadsheet to assist you in determining end of 2024 balances in the PBO, plan assets, prior service cost-AOCI,
the net loss-AOCI, and the pension liability.
Note: 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)
Balance, January 1, 2024
Service cost
Interest cost, 8%
Expected return on assets
Loss on assets
Amortization of:
Prior service cost-AOCI
Net loss-AOCI
Gain or Loss on PBO
Cash contributions
Retiree benefits
Balance, December 31, 2024
PBO
(300) ✔
(48)✔
(24) ✔
(372)
Plan
Assets
200✔
200
X Answer is not complete.
Prior
Service
Cost-
AOCI
0
Net Loss
-AOCI
0
Pension
Expense
48 ✓
24✔
72
Cash
Net
Pension
(Liability)
or Asset
0

Transcribed Image Text:Actuary and trustee reports indicate the following changes in the PBO and plan assets of Lakeside Cable during 2024:
Prior service cost at January 1, 2024, from plan amendment at the beginning of
2022 (amortization: $4 million per year)
Net loss-pensions at January 1, 2024 (previous losses exceeded previous gains)
Average remaining service life of the active employee group
Actuary's discount rate
($ in millions)
Beginning of 2024
Service cost
Interest cost, 8%
Loss (gain) on PBO
Less: Retiree benefits
End of 2024
Beginning of 2025
Service cost
PBO
$ 300
48
Interest cost, 8%
Loss (gain) on PBO
Less: Retiree benefits
End of 2025
24
(2)
(20)
$ 350
PBO
$ 350
38
28
5
(16)
Beginning of 2024
Return on plan assets, 7.5% (10%
expected)
$ 405
Cash contributions
Less: Retiree benefits
End of 2024
Assume the following actuary and trustee reports indicating changes in the PBO and plan assets of Lakeside Cable during
2025:
($ in millions)
Beginning of 2025
Return on plan assets, 15% (10%)
expected)
$ 32 million
$ 40 million
10 years
8%
Cash contributions
Less: Retiree benefits
End of 2025
Plan
Assets
$ 200
15
45
(20)
$ 240
Plan
Assets
$ 240
36
30
(16)
$ 290
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