P 17-16 Comprehensive (answer attached)

P 17-16 Comprehensive— reporting a pension plan; pension spreadsheet; determine changes in balances; two years

Actuary and trustee reports indicate the following changes in the PBO and plan assets of Lakeside Cable during 2011:

Prior service cost at Jan. 1, 2011, from plan amendment at the

beginning of 2009 (amortization: $4 million per year)

$32 million

Net loss-pensions at Jan. 1, 2011 (previous losses exceeded previous gains)

$40million

Average remaining service life of the active employee group

10 years

Actuary’s discount rate

8%

($in millions)

PBO

Plan Assets

Beginning of 2011

$300

Beginning of 2011

$200

Service cost

48

Return on plan assets.

Interest cost, 8%

24

7.5% (10% expected)

15

Loss (gain) on PBO

(2)

Cash contributions

45

Less: Retiree benefits

(20)

Less: Retiree benefits

 

 

(20)

End of 2011

$350

End of 2011

$240

"Get 15% discount on your first 3 orders with us"
Use the following coupon
FIRST15

Order Now