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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 Required: Plan Assets Beginning of 2024 $ 2,500 99 Return on plan assets, 8% (10% expected) 175 (33) Cash contributions (76) Less: Retiree benefits $ 2,665 End of 2024 1-a. Determine Mahomes's pension expense for 2024. $ 161 million $ 1,030 million 10 years 7% $ 2,300 184 109 (76) $ 2,517 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. Complete this question by entering your answers in the tabs below. Req 1A Req 1B and 2 to 4 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). Pension Expense Service cost Interest cost 99 175 Expected return on the plan assets (184) Amortization of prior service cost 16 Pension expense $ 106

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 Required: Plan Assets Beginning of 2024 $ 2,500 99 Return on plan assets, 8% (10% expected) 175 (33) Cash contributions (76) Less: Retiree benefits $ 2,665 End of 2024 1-a. Determine Mahomes's pension expense for 2024. $ 161 million $ 1,030 million 10 years 7% $ 2,300 184 109 (76) $ 2,517 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. Complete this question by entering your answers in the tabs below. Req 1A Req 1B and 2 to 4 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). Pension Expense Service cost Interest cost 99 175 Expected return on the plan assets (184) Amortization of prior service cost 16 Pension expense $ 106

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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 $ 2,500 Plan Assets Beginning of 2024 99 Return on plan assets, 8% (10% expected) 175 (33) Cash contributions (76) Less: Retiree benefits $ 2,665 End of 2024 $ 161 million. $ 1,030 million 10 years 7% $ 2,300 184 109 (76) $ 2,517 Required: 1-a. 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. Complete this question by entering your answers in the tabs below. Req 1A Req 1B and 2 to 4 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). Pension Expense Service cost Interest cost $ 99 175 • Expected return on the plan assets Amortization of prior service cost (184) 16 Pension expense $ 106
Transcribed Image Text: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 Plan Assets Beginning of 2024 99 Return on plan assets, 8% (10% expected) 175 (33) Cash contributions (76) Less: Retiree benefits $ 2,665 End of 2024 $ 161 million. $ 1,030 million 10 years 7% $ 2,300 184 109 (76) $ 2,517 Required: 1-a. 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. Complete this question by entering your answers in the tabs below. Req 1A Req 1B and 2 to 4 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). Pension Expense Service cost Interest cost $ 99 175 • Expected return on the plan assets Amortization of prior service cost (184) 16 Pension expense $ 106
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