Exercise 17-10 (Algo) Determine pension expense [LO17-6, 17-7] Abbott and Abbott has a noncontributory, defined benefit pension plan. At December 31, 2021, Abbott and Abbott recei following information: Projected Benefit Obligation Balance, January 1 ($ in millions) $125 Service cost Interest cost 22 Benefits paid 15 (8) Balance, December 31 $154 Plan Assets Balance, January 1 Actual return on plan assets Contributions 2021 Benefits paid $75 10 22 (8) Balance, December 31 $99 The expected long-term rate of return on plan assets was 12%. There was no prior service cost and a negligible net loss-A January 1, 2021. Required: 1. Determine Abbott and Abbott's pension expense for 2021. 2. Prepare the journal entries to record Abbott and Abbott's (a) pension expense, (b) funding, and (c) payment for 2021.
Exercise 17-10 (Algo) Determine pension expense [LO17-6, 17-7] Abbott and Abbott has a noncontributory, defined benefit pension plan. At December 31, 2021, Abbott and Abbott recei following information: Projected Benefit Obligation Balance, January 1 ($ in millions) $125 Service cost Interest cost 22 Benefits paid 15 (8) Balance, December 31 $154 Plan Assets Balance, January 1 Actual return on plan assets Contributions 2021 Benefits paid $75 10 22 (8) Balance, December 31 $99 The expected long-term rate of return on plan assets was 12%. There was no prior service cost and a negligible net loss-A January 1, 2021. Required: 1. Determine Abbott and Abbott's pension expense for 2021. 2. Prepare the journal entries to record Abbott and Abbott's (a) pension expense, (b) funding, and (c) payment for 2021.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Exercise 17-10 (Algo) Determine pension expense [LO17-6, 17-7]
Abbott and Abbott has a noncontributory, defined benefit pension plan. At December 31, 2021, Abbott and Abbott recei
following information:
Projected Benefit Obligation
Balance, January 1
($ in millions)
$125
Service cost
Interest cost
22
Benefits paid
15
(8)
Balance, December 31
$154
Plan Assets
Balance, January 1
Actual return on plan assets
Contributions 2021
Benefits paid
$75
10
22
(8)
Balance, December 31
$99
The expected long-term rate of return on plan assets was 12%. There was no prior service cost and a negligible net loss-A
January 1, 2021.
Required:
1. Determine Abbott and Abbott's pension expense for 2021.
2. Prepare the journal entries to record Abbott and Abbott's (a) pension expense, (b) funding, and (c) payment for 2021.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0102f895-aa30-4a4a-bf2f-ff8170e98ca7%2F03fbdafb-d665-4bc0-b36c-36be8e3391f2%2F4gzu55p_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 17-10 (Algo) Determine pension expense [LO17-6, 17-7]
Abbott and Abbott has a noncontributory, defined benefit pension plan. At December 31, 2021, Abbott and Abbott recei
following information:
Projected Benefit Obligation
Balance, January 1
($ in millions)
$125
Service cost
Interest cost
22
Benefits paid
15
(8)
Balance, December 31
$154
Plan Assets
Balance, January 1
Actual return on plan assets
Contributions 2021
Benefits paid
$75
10
22
(8)
Balance, December 31
$99
The expected long-term rate of return on plan assets was 12%. There was no prior service cost and a negligible net loss-A
January 1, 2021.
Required:
1. Determine Abbott and Abbott's pension expense for 2021.
2. Prepare the journal entries to record Abbott and Abbott's (a) pension expense, (b) funding, and (c) payment for 2021.
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