Business, 24.11.2021 09:20 keith1577621

Electronic Distribution has a defined benefit pension plan. Characteristics of the plan during 2021 are as follows: ($ millions)
PBO balance, January 1 $560
Plan assets balance, January 1 450
Service cost 65
Interest cost 45
Gain from change in actuarial assumption 20
Benefits paid (52)
Actual return on plan assets 29
Contributions 2016 55
The expected long-term rate of return on plan assets was 8%. There were no AOCI balances related to pensions on January 1, 2021, but at the end of 2021, the company amended the pension formula, creating a prior service cost of $12 million. Assume Electronic Distribution prepares its financial statements according to International Financial Reporting Standards (IFRS). Also assume that 10% is the current interest rate on high-quality corporate bonds.
Required:
1. Calculate the pension expense for 2016.
2. Prepare the journal entry to record pension expense, gains or losses, prior service cost, funding, and payment of benefits for 2016. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
3. What amount will Electronic Distribution report in its 2016 balance sheet as a net pension asset or net pension liability?

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Electronic Distribution has a defined benefit pension plan. Characteristics of the plan during 2021...

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