The following incomplete (columns have missing amounts) pension spreadsheet is for Old Tucson Corporation (OTC). ($ in millions) debit (credit) PBO Plan assets Prior service cost Net (Gain) loss Pension Expenses Cash Net Pension (Liability)/ Asset Beginning Balance (540 ) 70 Service cost 74 Interest cost Expected return on assets (27 ) Gain/loss on assets (4 ) Amortization of: Prior service cost (10 ) Net gain loss Loss on PBO (29 ) 29 Contribution to funds (68 ) Retiree benefits paid 51 (51 ) Ending balance (621 ) 312 66 90 (310 ) What was the prior service cost at the beginning of the year?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following incomplete (columns have missing amounts) pension spreadsheet is for Old Tucson Corporation (OTC).

($ in millions) debit (credit)	PBO		Plan assets	Prior service cost		Net (Gain) loss	Pension Expenses		Cash	Net Pension (Liability)/ Asset
Beginning Balance	(540	)								70
Service cost												74
Interest cost
Expected return on assets												(27	)
Gain/loss on assets										(4	)
Amortization of:
Prior service cost							(10	)
Net gain loss
Loss on PBO	(29	)								29
Contribution to funds														(68	)
Retiree benefits paid	51			(51	)
Ending balance	(621	)		312			66			90						(310	)

What was the prior service cost at the beginning of the year?

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