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: $6 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 $ 50 million $60 million 10 years 8% ($ in millions) PBO Beginning of 2024 $ 500 Beginning of 2024 Service cost 66 Interest cost, 8% 40 Return on plan assets, 7.5% (10% expected) Loss (gain) on PBO (4) Cash contributions Less: Retiree benefits (52) Less: Retiree benefits End of 2024 $ 550 End of 2024 Plan Assets $360 27 65 (52) $400 Assume the following actuary and trustee reports indicating changes in the PBO and plan assets of Lakeside Cable during 2025: ($ in millions) Beginning of 2025 PBO $ 550 Beginning of 2025 Plan Assets $ 400 Service cost 56 Interest cost, 8% 44 Return on plan assets, 17% (10% expected) Loss (gain) on PBO 5 Cash contributions Less: Retiree benefits (34) Less: Retiree benefits. End of 2025 $ 621 End of 2025 68 48 (34) $ 482 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 (i.e., 5,500,000 should be entered as 5.5). Net Loss-AOCI Debit Balance January 1 New loss Credit 60.0 5.0 28.0 New gain Balance December 31 35.0 2.0 Amortized in 2025 Prior Service Cost-AOCI Debit Credit Balance January 1 44.0 4.0 Amortized in 2025 Balance December 31 40.0
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: $6 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 $ 50 million $60 million 10 years 8% ($ in millions) PBO Beginning of 2024 $ 500 Beginning of 2024 Service cost 66 Interest cost, 8% 40 Return on plan assets, 7.5% (10% expected) Loss (gain) on PBO (4) Cash contributions Less: Retiree benefits (52) Less: Retiree benefits End of 2024 $ 550 End of 2024 Plan Assets $360 27 65 (52) $400 Assume the following actuary and trustee reports indicating changes in the PBO and plan assets of Lakeside Cable during 2025: ($ in millions) Beginning of 2025 PBO $ 550 Beginning of 2025 Plan Assets $ 400 Service cost 56 Interest cost, 8% 44 Return on plan assets, 17% (10% expected) Loss (gain) on PBO 5 Cash contributions Less: Retiree benefits (34) Less: Retiree benefits. End of 2025 $ 621 End of 2025 68 48 (34) $ 482 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 (i.e., 5,500,000 should be entered as 5.5). Net Loss-AOCI Debit Balance January 1 New loss Credit 60.0 5.0 28.0 New gain Balance December 31 35.0 2.0 Amortized in 2025 Prior Service Cost-AOCI Debit Credit Balance January 1 44.0 4.0 Amortized in 2025 Balance December 31 40.0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![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: $6 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
$ 50 million
$60 million
10 years
8%
($ in millions)
PBO
Beginning of 2024
$ 500
Beginning of 2024
Service cost
66
Interest cost, 8%
40
Return on plan assets, 7.5% (10%
expected)
Loss (gain) on PBO
(4)
Cash contributions
Less: Retiree benefits
(52)
Less: Retiree benefits
End of 2024
$ 550
End of 2024
Plan Assets
$360
27
65
(52)
$400
Assume the following actuary and trustee reports indicating changes in the PBO and plan assets of Lakeside Cable during
2025:
($ in millions)
Beginning of 2025
PBO
$ 550
Beginning of 2025
Plan Assets
$ 400
Service cost
56
Interest cost, 8%
44
Return on plan assets, 17% (10%
expected)
Loss (gain) on PBO
5
Cash contributions
Less: Retiree benefits
(34)
Less: Retiree benefits.
End of 2025
$ 621
End of 2025
68
48
(34)
$ 482
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 (i.e., 5,500,000 should be entered as 5.5).
Net Loss-AOCI
Debit
Balance January 1
New loss
Credit
60.0
5.0
28.0 New gain
Balance December 31
35.0
2.0 Amortized in 2025
Prior Service Cost-AOCI
Debit
Credit
Balance January 1
44.0
4.0 Amortized in 2025
Balance December 31
40.0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F03720dd8-8034-4294-9044-90db00b573f7%2F9dcaf8b2-8bed-4c2e-a718-b89b2fdb4029%2Fqjx0x5h_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: $6 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
$ 50 million
$60 million
10 years
8%
($ in millions)
PBO
Beginning of 2024
$ 500
Beginning of 2024
Service cost
66
Interest cost, 8%
40
Return on plan assets, 7.5% (10%
expected)
Loss (gain) on PBO
(4)
Cash contributions
Less: Retiree benefits
(52)
Less: Retiree benefits
End of 2024
$ 550
End of 2024
Plan Assets
$360
27
65
(52)
$400
Assume the following actuary and trustee reports indicating changes in the PBO and plan assets of Lakeside Cable during
2025:
($ in millions)
Beginning of 2025
PBO
$ 550
Beginning of 2025
Plan Assets
$ 400
Service cost
56
Interest cost, 8%
44
Return on plan assets, 17% (10%
expected)
Loss (gain) on PBO
5
Cash contributions
Less: Retiree benefits
(34)
Less: Retiree benefits.
End of 2025
$ 621
End of 2025
68
48
(34)
$ 482
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 (i.e., 5,500,000 should be entered as 5.5).
Net Loss-AOCI
Debit
Balance January 1
New loss
Credit
60.0
5.0
28.0 New gain
Balance December 31
35.0
2.0 Amortized in 2025
Prior Service Cost-AOCI
Debit
Credit
Balance January 1
44.0
4.0 Amortized in 2025
Balance December 31
40.0
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