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Beale Management has a noncontributory, defined benefit pension plan. On December 31, 2024 (the end...

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Accounting

Beale Management has a noncontributory, defined benefit pension plan. On December 31, 2024 (the end of Beale's fiscal year), the following pension-related data were available:

Projected Benefit Obligation ($ in millions)
Balance, January 1, 2024 $ 680
Service cost 70
Interest cost, discount rate, 5% 34
Gain due to changes in actuarial assumptions in 2024 (18)
Pension benefits paid (34)
Balance, December 31, 2024 $ 732
Plan Assets ($ in millions)
Balance, January 1, 2024 $ 700
Actual return on plan assets 44
(Expected return on plan assets, $49)
Cash contributions 85
Pension benefits paid (34)
Balance, December 31, 2024 $ 795
January 1, 2024, balances: ($ in millions)
Pension asset $ 20
Prior service costAOCI (amortization $6 per year) 30
Net gainAOCI (any amortization over 10 years) 110

Required:

1. to 3. Prepare the journal entries required for the pension during 2024.

4. Determine the balances at December 31, 2024, in the net gainAOCI, and prior service costAOCI. [Hint: You might find T-accounts useful.]

5. What amount will Beale report in its 2024 balance sheet as a net pension asset or net pension liability for the funded status of the plan?

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