Question

The following incomplete (columns have missing amounts) pension spreadsheet is for the current year for First Republic Corporation (FRC). ($ in millions) Debit(Credit) Plan Prior Service Net Pension Net Pension PBO Assets Cost (Gain)/Loss Expense Cash (Liability)/Asset Beginning balance (700 ) 28 (90 ) Service cost 62 Interest cost 49 Expected return on assets 68 Gain/loss on assets (2 ) Amortization of: Prior service cost (7 ) Net gain/loss 3 Loss on PBO (8 ) Contributions to fund (45 ) Retiree benefits paid (65 ) Ending balance 730 (81 ) What was the net pension asset/liability reported in the balance sheet at the end of the year?

Answer 1

The net pension asset/liability reported in the balance sheet at the end of the year is $24

Step-by-step explanation:

Service Cost(from pension expense column) = $62 ⇒ $(62) in PBO column

Interest Cost(from pension expense column) = $49 ⇒ $(49) in PBO column

Loss on PBO (given) = $(8)

Retiree benefits (from plan assets column) = $(65) ⇒ $65 in PBO column

Ending PBO = $(700) + (62) + (49) + (8) + 65 = $(754)

Net pension liability = $(754) + 730 = $(24)

Answer 2

The net pension asset/liability reported in the balance sheet at the end of the year is $24

Step-by-step explanation:

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