Abbott and Abbott has a noncontributory, defined benefit pension plan. At December 31, 2021, Abbott...
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Abbott and Abbott has a noncontributory, defined benefit pension plan. At December 31, 2021, Abbott and Abbott received the following information: Projected Benefit Obligation ($ in millions) Balance, January 1 $ 150 Service cost 28 Interest cost 18 Benefits paid (11 ) Balance, December 31 $ 185 Plan Assets Balance, January 1 $ 100 Actual return on plan assets 14 Contributions 2021 28 Benefits paid (11 ) Balance, December 31 $ 131 The expected long-term rate of return on plan assets was 12%. There was no prior service cost and a negligible net lossAOCI on January 1, 2021. Required:
1. Determine Abbott and Abbotts pension expense for 2021.
2. Prepare the journal entries to record Abbott and Abbotts
(a) pension expense, (b) funding, and (c) payment for 2021.
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