The Warren Group’s pension cost is $39 million. This amount includes a $68 million service cost, a $36 million interest cost, a $67 million reduction for the expected return on plan assets, and a $2 million amortization of a prior service cost. 1. Choose the components of pension expense that affects the net pension liability: Service costunanswered Amortization of prior service costunanswered Interest costunanswered Expected return on plan assets 2. Prepare the journal entry to record the pension cost.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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The Warren Group’s pension cost is $39 million. This amount includes a $68 million service cost, a $36 million interest cost, a $67 million reduction for the expected return on plan assets, and a $2 million amortization of a prior service cost.
 
1. Choose the components of pension expense that affects the net pension liability:

  • Service costunanswered
  • Amortization of prior service costunanswered
  • Interest costunanswered
  • Expected return on plan assets

2. Prepare the journal entry to record the pension cost.

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