Required Information [The following information applies to the questions displayed below] Actuary and trustee reports indicate the following changes in the PBO and plan assets of Lakeside Cable during 2024: Prior service cost at January 1, 2024, from plan amendment at the beginning of 2022 (amortization: $4 million per year) Net loss-pensions at January 1, 2024 (previous losses exceeded previous gains) Average remaining service life of the active employee group Actuary's discount rate ($ in millions) Beginning of 2024 Service cost Interest cost, 8% Loss (gain) on PDO Less: Retiree benefits End of 2024 Beginning of 2025 Service cost Interest cost, 8% Loss (gain) on PDO Less: Retiree benefits End of 2025 Balance January 1 Debit Balance December 31 Balance January 1 Assume the following actuary and trustee reports indicating changes in the PBO and plan assets of Lakeside Cable during 2025: ($ in millions) Debit PBO $ 300 48 Balance December 31 24 (2) (20) $ 350 Net Loss-AOCI PRO $350 38 28 $ 405 5 Beginning of 2024 Return on plan assets, 7.5% (10% expected) Prior Service Cost-AOCI Cash contributions Less: Retiree benefits End of 2024 Beginning of 2025 Return on plan assets, 15% (10% expected) Using T-accounts, determine the balances at December 31, 2025, in the net loss-AOCI and prior service cost-AOCI. lote: Enter your answers in millions rounded to 1 decimal place (l.e., 5.500,000 should be entered as 5.5). Cash contributions Less: Retiree benefits End of 2025 $ 32 million $ 40 million. 10 years 8% Credit Plan Assets $ 200 Credit 15 45 (20) $ 240 Plan Assets $ 240 36 30 (16) $ 290
Required Information [The following information applies to the questions displayed below] Actuary and trustee reports indicate the following changes in the PBO and plan assets of Lakeside Cable during 2024: Prior service cost at January 1, 2024, from plan amendment at the beginning of 2022 (amortization: $4 million per year) Net loss-pensions at January 1, 2024 (previous losses exceeded previous gains) Average remaining service life of the active employee group Actuary's discount rate ($ in millions) Beginning of 2024 Service cost Interest cost, 8% Loss (gain) on PDO Less: Retiree benefits End of 2024 Beginning of 2025 Service cost Interest cost, 8% Loss (gain) on PDO Less: Retiree benefits End of 2025 Balance January 1 Debit Balance December 31 Balance January 1 Assume the following actuary and trustee reports indicating changes in the PBO and plan assets of Lakeside Cable during 2025: ($ in millions) Debit PBO $ 300 48 Balance December 31 24 (2) (20) $ 350 Net Loss-AOCI PRO $350 38 28 $ 405 5 Beginning of 2024 Return on plan assets, 7.5% (10% expected) Prior Service Cost-AOCI Cash contributions Less: Retiree benefits End of 2024 Beginning of 2025 Return on plan assets, 15% (10% expected) Using T-accounts, determine the balances at December 31, 2025, in the net loss-AOCI and prior service cost-AOCI. lote: Enter your answers in millions rounded to 1 decimal place (l.e., 5.500,000 should be entered as 5.5). Cash contributions Less: Retiree benefits End of 2025 $ 32 million $ 40 million. 10 years 8% Credit Plan Assets $ 200 Credit 15 45 (20) $ 240 Plan Assets $ 240 36 30 (16) $ 290
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Ww.222.
![Required Information
[The following information applies to the questions displayed below.]
Actuary and trustee reports indicate the following changes in the PBO and plan assets of Lakeside Cable during 2024:
Prior service cost at January 1, 2024, from plan amendment at the beginning of 2022
(amortization: $4 million per year)
Net loss-pensions at January 1, 2024 (previous losses exceeded previous gains)
Average remaining service life of the active employee group
Actuary's discount rate
($ in millions)
Beginning of 2024
Service cost
Interest cost, 8x
Loss (gain) on PBO
Less: Retiree benefits
End of 2024
Beginning of 2825
Service cost
Interest cost, 8%
Loss (gain) on PBO
Less: Retiree benefits
End of 2025
Balance January 1
Debit
Balance December 31
Balance January 1
Assume the following actuary and trustee reports Indicating changes in the PBO and plan assets of Lakeside Cable during
2025:
($ in millions)
Debit
PBO
$ 300
48
Balance December 31
24
(2)
(20)
$350
Net Loss-AOCI
PBO
$ 350
38
28
5
(16)
$ 405
Beginning of 28024
Return on plan assets, 7.5% (10%
expected)
Cash contributions
Less: Retiree benefits
End of 2024
Prior Service Cost-AOCI
Beginning of 2025
Return on plan assets, 15% (10%
expected)
6. Using T-accounts, determine the balances at December 31, 2025, In the net loss-AOCI and prior service cost-AOCI.
Note: Enter your answers in millions rounded to 1 decimal place (l.e., 5,500,000 should be entered as 5.5).
Cash contributions
Less: Retiree benefits
End of 2025
$ 32 million
$ 40 million
10 years
8%
Credit
Plan Assets
$ 200
Credit
15
45
(20)
$ 240
Plan Assets
$ 240
36
30
(16)
$ 290](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0d13a3f9-65b8-4747-9f71-a51d29a24232%2Ff050f7c4-a62b-4e1c-b96d-3a5fe7a5089b%2Fjqqxig_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required Information
[The following information applies to the questions displayed below.]
Actuary and trustee reports indicate the following changes in the PBO and plan assets of Lakeside Cable during 2024:
Prior service cost at January 1, 2024, from plan amendment at the beginning of 2022
(amortization: $4 million per year)
Net loss-pensions at January 1, 2024 (previous losses exceeded previous gains)
Average remaining service life of the active employee group
Actuary's discount rate
($ in millions)
Beginning of 2024
Service cost
Interest cost, 8x
Loss (gain) on PBO
Less: Retiree benefits
End of 2024
Beginning of 2825
Service cost
Interest cost, 8%
Loss (gain) on PBO
Less: Retiree benefits
End of 2025
Balance January 1
Debit
Balance December 31
Balance January 1
Assume the following actuary and trustee reports Indicating changes in the PBO and plan assets of Lakeside Cable during
2025:
($ in millions)
Debit
PBO
$ 300
48
Balance December 31
24
(2)
(20)
$350
Net Loss-AOCI
PBO
$ 350
38
28
5
(16)
$ 405
Beginning of 28024
Return on plan assets, 7.5% (10%
expected)
Cash contributions
Less: Retiree benefits
End of 2024
Prior Service Cost-AOCI
Beginning of 2025
Return on plan assets, 15% (10%
expected)
6. Using T-accounts, determine the balances at December 31, 2025, In the net loss-AOCI and prior service cost-AOCI.
Note: Enter your answers in millions rounded to 1 decimal place (l.e., 5,500,000 should be entered as 5.5).
Cash contributions
Less: Retiree benefits
End of 2025
$ 32 million
$ 40 million
10 years
8%
Credit
Plan Assets
$ 200
Credit
15
45
(20)
$ 240
Plan Assets
$ 240
36
30
(16)
$ 290
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