Pension data for David Emerson Enterprises include the following: ($ in millions) Discount rate, 12% Projected benefit obligation, January 1 $300 Projected benefit obligation, December 31 470 Accumulated benefit obligation, January 1 305 Accumulated benefit obligation, December 31 420 Cash contributions to pension fund, December 31 155 Benefit payments to retirees, December 31 55 Required:Assuming no change in actuarial assumptions and estimates, determine the service cost component of pension expense for the year ended December 31.
Pension data for David Emerson Enterprises include the following: ($ in millions) Discount rate, 12% Projected benefit obligation, January 1 $300 Projected benefit obligation, December 31 470 Accumulated benefit obligation, January 1 305 Accumulated benefit obligation, December 31 420 Cash contributions to pension fund, December 31 155 Benefit payments to retirees, December 31 55 Required:Assuming no change in actuarial assumptions and estimates, determine the service cost component of pension expense for the year ended December 31.
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter12: Liabilities: Off-balance-sheet Financing, Retirement Benefits, And Income Taxes
Section: Chapter Questions
Problem 21E
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Question
Pension data for David Emerson Enterprises include the following:
($ in millions) | |
Discount rate, 12% | |
Projected benefit obligation, January 1 | $300 |
Projected benefit obligation, December 31 | 470 |
Accumulated benefit obligation, January 1 | 305 |
Accumulated benefit obligation, December 31 | 420 |
Cash contributions to pension fund, December 31 | 155 |
Benefit payments to retirees, December 31 | 55 |
Required:
Assuming no change in actuarial assumptions and estimates, determine the service cost component of pension expense for the year ended December 31.
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