Problem
Abbott and Abbott - Determine pension expense
Abbott and Abbott has a noncontributory, defined benefit pension plan. At December 31, 2011, Abbott and Abbott received the following information:
The expected long-term rate of return on plan assets was 10%. There was no prior service cost and a negligible net loss-AOCI on January 1, 2011.
Task
• Determine Abbott and Abbott's pension expense for 2011.
• Prepare the journal entries to record Abbott and Abbott's pension expense, funding, and payment for 2011.
The response should include a reference list. One-inch margins, Using Times New Roman 12 pnt font, double-space and APA style of writing and citations.