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 received the following information: Projected Benefit Obligation Balance, January 1 Service cost ($ in millions) $125 22 Interest cost 15 Benefits paid (8) Balance, December 31 $154 Plan Assets Balance, January 1 Actual return on plan assets $75 10 Contributions 2021 22 Benefits paid |(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-AOCI on January 1, 2021. Required: 1. Determine Abbott and Abbott's pension expense for 2021. 2 Prenare the iournal entries to record Abbott ancd Abbott's a) pension expense (6) fundina and (c) pavment for 2021

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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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 received the
following information:
Projected Benefit Obligation
Balance, January 1
Service cost
($ in millions)
$125
22
Interest cost
15
Benefits paid
(8)
Balance, December 31
$154
Plan Assets
Balance, January 1
Actual return on plan assets
$75
10
Contributions 2021
22
Benefits paid
|(8)
Balance, December 31
$99
The expected long-term rate of return on plan assets was 12%. There was no prior service cost and a negligible net loss-AOCI on
January 1, 2021.
Required:
1. Determine Abbott and Abbott's pension expense for 2021.
2 Prenare the iournal entries to record Abbott ancd Abbott's a) pension expense (6) fundina and (c) pavment for 2021
Transcribed Image Text:Exercise 17-10 (Algo) Determine pension expense [LO17-6, 17-7] Abbott and Abbott has a noncontributory, defined benefit pension plan. At December 31, 2021, Abbott and Abbott received the following information: Projected Benefit Obligation Balance, January 1 Service cost ($ in millions) $125 22 Interest cost 15 Benefits paid (8) Balance, December 31 $154 Plan Assets Balance, January 1 Actual return on plan assets $75 10 Contributions 2021 22 Benefits paid |(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-AOCI on January 1, 2021. Required: 1. Determine Abbott and Abbott's pension expense for 2021. 2 Prenare the iournal entries to record Abbott ancd Abbott's a) pension expense (6) fundina and (c) pavment for 2021
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