What amount will electronic distribution report in its 2011

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Electronic Distribution has a defined benefit pension plan. Characteristics of the plan during 2011 are as follows: ($ millions)

PBO balance, January 1 $ 470

Plan assets balance, January 1 310

Service cost 85

Interest cost 40

Gain from change in actuarial assumption 20

Benefits paid (37)

Actual return on plan assets 23

Contributions 2011 60

The expected long-term rate of return on plan assets was 11%. There were no AOCI balances related to pensions on January 1, 2011, but at the end of 2011, the company amended the pension formula creating a prior service cost of $12 million, two-thirds of which is related to employees whose pension benefits have vested.

Required:

(1) Calculate the pension expense for 2011. (Do not round intermediate calculations. Enter your answers in millions rounded to 1 decimal place. Omit the "$" sign in your response.)

Pension expense? $ ________

(2) Prepare the journal entry to record pension expense, gains or losses, prior service cost, funding, and payment of benefits for 2011. (Do not round intermediate calculations. Enter your answers in millions rounded to 1 decimal place. Omit the "$" sign in your response.)

General Journal :

  • To record the pension expense :
  • To record the prior service cost:
  • To record the gain on OCI:
  • To record the loss on OCI:
  • To record the funding:
  • To record the payment of benefits:

(3) What amount will Electronic Distribution report in its 2011 balance sheet as a net pension asset or net pension liability? (Enter your answer in millions. Omit the "$" sign in your response.)

Net pension asset or net pension liability? $__________

Reference no: EM13603856

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