Abbott and Abbott has a noncontributory, defined benefit pension plan. At December 31, 2011, Abbott and Abbott received the following information:
($ in the millions)
Projected Benefit Organization
Balance, January 1 $120
Service Cost 20
Interest Cost 12
Benefits paid (9)
Balance, December 31 $143
Plan Assets
Balance, January 1 $ 80
Actual return on plan assets 9
Contribution 2011 20
Benefits paid (9)
Balance, December 31 $100
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.
Required:
1. Determine Abbott and Abbott's pension expense for 2011.
2. Prepare the journal entries record Abbott and Abbott's pension, funding, and payments for 2011.