Problem 1
"The following information relates to Billy Bob's Donuts defined benefit pension plan during the current reporting year (All the amounts are in millions):
Plan Assets at the beginning of the year $350
Expected Return on Plan Assets 45
Actual return on plan assets 38
Cash Contributions 65
Amortization of net loss 7
Retiree Benefits 8
Requirements:
1. Determine the amount of pension plan assets at the fair value on Dec 31.
Problem 2
Pension data for the Cookie Monster Company included the following for the current calendar year:
Service Cost $115,000
PBO, Jan 1 755,000
Plan Assets, Jan 1 810,000
Amortization of prior service cost 7,000
Amortization of net loss 3,000
Discount Rate= 9%
Actual return on Assets=10%
Expected Return on Plan assets=9%
Requirements:
2. Determine the amount of pension expense.