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 of2022 (amortization: $4 million per year)Net loss-pensions at January 1, 2024 (previous losses exceeded previous gains)Average remaining service life of the active employee groupActuary's discount rate($ in millions)Beginning of 2024Service costInterest cost, 8%Loss (gain) on PBOLess: Retiree benefitsEnd of 2024Beginning of 2025Service costPBO$ 30048Interest cost, 8%Loss (gain) on PBOLess: Retiree benefitsEnd of 202524(2)(20)$ 350PBO$ 35038Beginning of 2024Return on plan assets, 7.5% (10%expected)285(16)$ 405Cash contributionsLess: Retiree benefitsEnd of 2024Assume the following actuary and trustee reports indicating changes in the PBO and plan assets of Lakeside Cable during2025:($ in millions)Beginning of 2025Return on plan assets, 15% (10%expected)$ 32 million$ 40 million10 years8%Cash contributionsLess: Retiree benefitsEnd of 2025PlanAssets$ 2001545(20)$ 240PlanAssets$ 2403630(16)$ 290 4-a. Determine Lakeside's pension expense for 2025.4-b. Prepare the appropriate journal entries to record the expense, the cash funding of plan assets, and payment of benefits toretirees.Complete this question by entering your answers in the tabs below.Req 4AReq 4BAnswer is not complete.Determine Lakeside's pension expense for 2025.Note: Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).Pension expense 2025$56.5 x million< Req 4AReq 4B

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 PBO $ 300 48 24 (2) (20) $ 350 Beginning of 2024 Return on plan assets, 7.5% (10% expected) Cash contributions Less: Retiree benefits End of 2024 $ 32 million $ 40 million 10 years 8% Plan Assets $ 200 15 45 (20) $ 240

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 PBO $ 300 48 24 (2) (20) $ 350 Beginning of 2024 Return on plan assets, 7.5% (10% expected) Cash contributions Less: Retiree benefits End of 2024 $ 32 million $ 40 million 10 years 8% Plan Assets $ 200 15 45 (20) $ 240

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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