Harrison forklifts pension expense includes a service cost


Question - Harrison Forklift's pension expense includes a service cost of $16 million. Harrison began the year with a pension liability of $40 million (underfunded pension plan).

1. Interest cost, $12; expected return on assets, $10; amortization of net loss, $3.

2. Interest cost, $12; expected return on assets, $9; amortization of net gain, $3.

3. Interest cost, $12; expected return on assets, $9; amortization of net loss, $3; amortization of prior service cost, $4 million.

Required: Prepare the appropriate general journal entries to record Harrison's pension expense in each of the following independent situations regarding the other components of pension expense ($ in millions).

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Accounting Basics: Harrison forklifts pension expense includes a service cost
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