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nydimaria [60]
3 years ago
14

Pension data for Millington Enterprises include the following: ($ in millions) Discount rate, 10% Projected benefit obligation,

January 1$370 Projected benefit obligation, December 31 475 Accumulated benefit obligation, January 1 310 Accumulated benefit obligation, December 31 425 Cash contributions to pension fund, December 31 160 Benefit payments to retirees, December 31 56 Required: Assuming no change in actuarial assumptions and estimates, determine the service cost component of pension expense for the year ended December 31.
Business
1 answer:
Rzqust [24]3 years ago
5 0

Answer:

The service cost component of pension expense for the year ended December 31 is $124 million

Explanation:

Projected benefit obligation, December 31                        $475  

Less: Projected benefit obligation, January 1                -$370  

Less: Interest cost = -37                                            =370*10%

Add: Benefit payments to retirees                                 $56  

Service cost                                                                   $124 million

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