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: $7 million per year) Net loss-AOCI at January 1, 2824 (previous losses exceeded previous gains) Average remaining service life of the active employee group Actuary's discount rate ($ in millions) PBO Beginning of 2924 Service cost Interest cost, 7% Loss (gain) on PBO Less: Retiree benefits End of 2024 Req 14 $ 900 83 63 (17) (44) $ 985 Req 1B and 21 to 4 Plan Assets Beginning of 2024 Pension expense Return on plan assets, 8% (10% expected) Complete this question by entering your answers in the tabs below. Cash contributions Less: Retiree benefits End of 2024 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. $ 49 million $ 230 million 10 years 7% $700 56 93 (44) $ 805 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
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: $7 million per year) Net loss-AOCI at January 1, 2824 (previous losses exceeded previous gains) Average remaining service life of the active employee group Actuary's discount rate ($ in millions) PBO Beginning of 2924 Service cost Interest cost, 7% Loss (gain) on PBO Less: Retiree benefits End of 2024 Req 14 $ 900 83 63 (17) (44) $ 985 Req 1B and 21 to 4 Plan Assets Beginning of 2024 Pension expense Return on plan assets, 8% (10% expected) Complete this question by entering your answers in the tabs below. Cash contributions Less: Retiree benefits End of 2024 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. $ 49 million $ 230 million 10 years 7% $700 56 93 (44) $ 805 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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: $7 million per year)
Net loss-AOCI at January 1, 2024 (previous losses exceeded previous gains)
Average remaining service life of the active employee group
Actuary's discount rate
($ in millions)
PBO
Beginning of 2824
Service cost
Interest cost, 7%
Loss (gain) on PBO
Less: Retiree benefits
End of 2024
Req 1A
Req 18 and 2
to 4
$ 900
83
63
(17)
(44)
$ 985
Plan Assets
Pension expense
Beginning of 2024
Complete this question by entering your answers in the tabs below.
Pension Expense
Return on plan assets, 8% (10%
expected)
Cash contributions
Less: Retiree benefits
End of 2024
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.
$ 49 million
$ 230 million
10 years
7%
$700
56
93
(44)
$ 805
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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