Acc306 Intermediate Accounting: E17-10 Abbott and Abbott has a noncontributory, defined
Acc306 Intermediate Accounting E17-10 Determine pension expense Abbott and Abbott has a noncontributory, defined benefit pension plan. At December 31, 2011, Abbott and Abbott received the following information: Projected Benefit Obligation ($in millions) Balance, January 1 120 Service cost 20 Interest cost 12 Benefits paid (9) Balance, December 31 $143 Plant 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 to record Abbott and Abbott’s pension expense, funding, and payment for 2011.