Part A: The following information relates to Company A's defined benefit pension plan during the current fiscal year:
Plan assets (beginning of the year) $400 (all number are in $millions)
Expected return on plan assets 40
Actual return on plan assets 32
Cash contributions 60
Amortization of net loss 8
Retiree benefits 9
Question A: Determine the amount of pension plan assets at fair value on December 31.
Part B: Pension data for Company B included the following for the current fiscal year:
Service cost $100,000
Projected benefit obligation (PBO), January 1 750,000
Plan assets, January 1 800,000
Amortization of prior service cost 6,000
Amortization of net loss 2,000
Discount rate, 8%
Expected return on plan assets, 10%
Actual return on plan assets, 12%
Question B: Determine pension expense for the year ended December 31.