Actuary and trustee reports indicate the following changes in the PBO and plan assets of Mahomes Industries during 2024: Prior service cost at January 1, 2024, from plan amendment at the beginning of 2021 (amortization: $23 million per year) Net loss-AOCI at January 1, 2024 (previous losses exceeded previous gains) Average remaining service life of the active employee group Actuary's discount rate ($ in millions) PBO Beginning of 2024 Service cost Interest cost, 7% Loss (gain) on PBO Less: Retiree benefits End of 2024 $ 2,500 99 Req 1A 175 (33) (76) $ 2,665 Req 18 and 2 to 4 Plan Assets Beginning of 2024 Return on plan assets, 8% (10% expected) Cash contributions Less: Retiree benefits End of 2024 Complete this question by entering your answers in the tabs below. $ 161 million $ 1,030 million 10 years 7% Required: 1-8. Determine Mahomes's pension expense for 2024. 1-b, 2. to 4. Prepare the appropriate Journal entries to record the pension expense, to record any 2024 gains and losses, to record the cash contribution to plan assets and to record retiree benefits. $ 2,300 4 184 189 (76) $ 2,517 Determine Mahomes's pension expense for 2024. Note: Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).
Actuary and trustee reports indicate the following changes in the PBO and plan assets of Mahomes Industries during 2024: Prior service cost at January 1, 2024, from plan amendment at the beginning of 2021 (amortization: $23 million per year) Net loss-AOCI at January 1, 2024 (previous losses exceeded previous gains) Average remaining service life of the active employee group Actuary's discount rate ($ in millions) PBO Beginning of 2024 Service cost Interest cost, 7% Loss (gain) on PBO Less: Retiree benefits End of 2024 $ 2,500 99 Req 1A 175 (33) (76) $ 2,665 Req 18 and 2 to 4 Plan Assets Beginning of 2024 Return on plan assets, 8% (10% expected) Cash contributions Less: Retiree benefits End of 2024 Complete this question by entering your answers in the tabs below. $ 161 million $ 1,030 million 10 years 7% Required: 1-8. Determine Mahomes's pension expense for 2024. 1-b, 2. to 4. Prepare the appropriate Journal entries to record the pension expense, to record any 2024 gains and losses, to record the cash contribution to plan assets and to record retiree benefits. $ 2,300 4 184 189 (76) $ 2,517 Determine Mahomes's pension expense for 2024. Note: Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Actuary and trustee reports indicate the following changes in the PBO and plan assets of Mahomes Industries during 2024:
Prior service cost at January 1, 2024, from plan amendment at the beginning of 2021
(amortization: $23 million per year)
Net loss-AOCI at January 1, 2024 (previous losses exceeded previous gains)
Average remaining service life of the active employee group
Actuary's discount rate
($ in millions)
PBO
Beginning of 2024
Service cost
Interest cost, 7%
Loss (gain) on PBO
Less: Retiree benefits
End of 2024
Req 1A
Req 18 and 2
to 4
$2,500
99
175
(33)
(76)
$ 2,665
Pension expense
Plan Assets
Complete this question by entering your answers in the tabs below.
Pension Expense
Beginning of 2024
Return on plan assets, 8% (10%
expected)
Cash contributions
Less: Retiree benefits
End of 2024
Required:
1-8. Determine Mahomes's pension expense for 2024.
1-b, 2. to 4. Prepare the appropriate Journal entries to record the pension expense, to record any 2024 gains and losses, to record the
cash contribution to plan assets and to record retiree benefits.
$ 161 million
$ 1,030 million
10 years
7%
$ 2,300
184
109
(76)
$ 2,517
Determine Mahomes's pension expense for 2024.
Note: Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions (i.e., 10,000,000 should
be entered as 10).
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