Question - Changes in the pension obligation; determine service cost
Pension data for Millington Enterprises include the following:
($ in millions)
Discount rate, 10%
Projected benefit obligation, January 1 $ 350
Projected benefit obligation, December 31 540
Accumulated benefit obligation, January 1 375
Accumulated benefit obligation, December 31 490
Cash contributions to pension fund, December 31 225
Benefit payments to retirees, December 31 69
Required: Assuming no change in actuarial assumptions and estimates, determine the service cost component of pension expense for the year ended December 31.
What is the service cost?