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 PBO Less: Retiree benefits End of 2024 PBO $ 300 48 24 (2) (20) $ 350 Beginning of 2024 Return on plan assets, 7.5% (10% expected) Cash contributions Less: Retiree benefits End of 2024 $ 32 million $ 40 million 10 years 8% Plan Assets $ 200 15 45 (20) $ 240

FINANCIAL ACCOUNTING
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ISBN:9781259964947
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Chapter1: Financial Statements And Business Decisions
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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 PBO
Less: Retiree benefits
End of 2024
Beginning of 2025
Service cost
PBO
$ 300
48
Interest cost, 8%
Loss (gain) on PBO
Less: Retiree benefits
End of 2025
24
(2)
(20)
$ 350
PBO
$ 350
38
Beginning of 2024
Return on plan assets, 7.5% (10%
expected)
28
5
(16)
$ 405
Cash contributions
Less: Retiree benefits
End of 2024
Assume the following actuary and trustee reports indicating changes in the PBO and plan assets of Lakeside Cable during
2025:
($ in millions)
Beginning of 2025
Return on plan assets, 15% (10%
expected)
$ 32 million
$ 40 million
10 years
8%
Cash contributions
Less: Retiree benefits
End of 2025
Plan
Assets
$ 200
15
45
(20)
$ 240
Plan
Assets
$ 240
36
30
(16)
$ 290
Transcribed Image Text: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 PBO Less: Retiree benefits End of 2024 Beginning of 2025 Service cost PBO $ 300 48 Interest cost, 8% Loss (gain) on PBO Less: Retiree benefits End of 2025 24 (2) (20) $ 350 PBO $ 350 38 Beginning of 2024 Return on plan assets, 7.5% (10% expected) 28 5 (16) $ 405 Cash contributions Less: Retiree benefits End of 2024 Assume the following actuary and trustee reports indicating changes in the PBO and plan assets of Lakeside Cable during 2025: ($ in millions) Beginning of 2025 Return on plan assets, 15% (10% expected) $ 32 million $ 40 million 10 years 8% Cash contributions Less: Retiree benefits End of 2025 Plan Assets $ 200 15 45 (20) $ 240 Plan Assets $ 240 36 30 (16) $ 290
4-a. Determine Lakeside's pension expense for 2025.
4-b. Prepare the appropriate journal entries to record the expense, the cash funding of plan assets, and payment of benefits to
retirees.
Complete this question by entering your answers in the tabs below.
Req 4A
Req 4B
Answer is not complete.
Determine Lakeside's pension expense for 2025.
Note: Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).
Pension expense 2025
$
56.5 x million
< Req 4A
Req 4B
Transcribed Image Text:4-a. Determine Lakeside's pension expense for 2025. 4-b. Prepare the appropriate journal entries to record the expense, the cash funding of plan assets, and payment of benefits to retirees. Complete this question by entering your answers in the tabs below. Req 4A Req 4B Answer is not complete. Determine Lakeside's pension expense for 2025. Note: Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). Pension expense 2025 $ 56.5 x million < Req 4A Req 4B
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