6. The following incomplete pension spreadsheet is for the current year for Fast Race Corporation (FRC). ($ in millions) Debit (Credit) PBO Plan Assets Prior Service Cost Net(Gain)/Loss Pension Expense Cash Net Pension (Liability)/Asset Beginning balance Service cost (700) 28 (90) 62 49 Interest cost Expected return on assets 68 Gain/loss on assets Amortization of: Prior service cost Net gain/loss Loss on PBO (8) Contributions to fund Retiree benefits paid Ending balance (65) 730 What was FRC's pension expense for the year? A. $49 O B. $107 O C. $44 O D. $47 (2) (7) 3 (81) (45)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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6. The following incomplete pension spreadsheet is for the current year for Fast Race Corporation (FRC).
($ in millions) Debit (Credit) PBO Plan Assets Prior Service Cost Net(Gain)/Loss Pension Expense Cash Net Pension (Liability)/Asset
Beginning balance
Service cost
(700)
28
(90)
62
49
Interest cost
Expected return on assets
68
Gain/loss on assets
Amortization of:
Prior service cost
Net gain/loss
Loss on PBO
(8)
Contributions to fund
Retiree benefits paid
Ending balance
(65)
730
What was FRC's pension expense for the year?
A. $49
O B. $107
O C. $44
O D. $47
(2)
(7)
3
(81)
(45)
Transcribed Image Text:6. The following incomplete pension spreadsheet is for the current year for Fast Race Corporation (FRC). ($ in millions) Debit (Credit) PBO Plan Assets Prior Service Cost Net(Gain)/Loss Pension Expense Cash Net Pension (Liability)/Asset Beginning balance Service cost (700) 28 (90) 62 49 Interest cost Expected return on assets 68 Gain/loss on assets Amortization of: Prior service cost Net gain/loss Loss on PBO (8) Contributions to fund Retiree benefits paid Ending balance (65) 730 What was FRC's pension expense for the year? A. $49 O B. $107 O C. $44 O D. $47 (2) (7) 3 (81) (45)
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