Abbott and Abbott - 41681

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  • From: Finance,
  • Posted on: Tue 28 Jan, 2014
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Request Description

Abbott and Abbott has a noncontributory, defined benefit pension plan.  At December 31, 2011, Abbott and Abbott received the following information:

 

($ in the millions)

 

Projected Benefit Organization

 

Balance, January 1                                                       $120

 

Service Cost                                                                      20

 

Interest Cost                                                                     12

 

Benefits paid                                                                    (9)

 

Balance, December 31                                               $143

 

Plan Assets

 

Balance, January 1                                                      $  80

 

 Actual return on plan assets                                          9

 

Contribution 2011                                                          20

 

Benefits paid (9)

 

Balance, December 31                                             $100

 

The expected long-term rate of return on plan assets was 10%.  There was no prior service cost and a negligible net loss- AOCI on January 1, 2011.

 

Required:

 

1. Determine Abbott and Abbott’s pension expense for 2011.

 

2. Prepare the journal entries record Abbott and Abbott’s pension, funding, and payments for 2011.

Solution Description
Question:
xxxxxxx
xx Pension Expense for xxxx
from xxx xxxxxxxxx xx xxxx xxxx :<
Attachments
Abbott and Abbott Answer.xlsx
Abbott and Abbo...