EXERCISES
Brief BRIEF Exercise 17-1
($ in millions)
Beginning of the year PBO Service cost Interest cost Loss (gain) on PBO Less: Retiree benefits End of the year PBO
$80 10 4 0 (6) $88
(5% x $80)
Brief Exercise 17-2
($ in millions)
Beginning of the year PBO Service cost Interest cost Loss (gain) on PBO Less: Retiree benefits End of the year PBO
$80
?
4 0 (6) $85 (5% x $80)
Service cost = $85 80 4 + 6 = $7 million
Brief Exercise 17-3
($ in millions)
Beginning of the year PBO Service cost Interest cost Loss (gain) on PBO Less: Retiree benefits End of the year PBO
$80 10 4 0 (?) $85
(5% x $80)
Retiree benefits = $85 80 10 4 = $9 million
Brief Exercise 174
($ in millions)
Beginning of the year PBO Service cost Interest cost Loss (gain) on PBO Less: Retiree benefits End of the year PBO
$80 10 4
(5% x $80)
?
(6) $85
Gain = $85 80 10 4 + 6 = $3 million
Brief Exercise 17-5
($ in millions)
Plan assets Beginning of the year Actual return Cash contributions Less: Retiree benefits End of the year
$80 4 (5% x $80) 7 (6) $85
Brief Exercise 17-6
($ in millions)
Plan assets Beginning of the year Actual return Cash contributions Less: Retiree benefits End of the year
$80 4 7 (?) $83
(5% x $80)
Retiree benefits = $83 80 4 7 = $8 million