ACC 307 6-2 Homework 4 - Mayer Corporation has a defined...

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Mayer Corporation has a defined benefit pension plan. Mayer’s policy is to fund the plan annually, cash payments being made at the end of each year. Data relating to the pension plan for 2013 are as follows: December 31 ($ in millions) 2013 2012 Plan assets $ 1,620 $1,300 Net Pension Expense for 2013: Service cost $ 186 Interest cost (6% × $1,650) 99 Actual return on the plan assets (12% × $1,300 = $156) Adjusted for: $26 gain on the plan assets* (130) Amortization of prior service cost 11 Amortization of net loss 1 $ 167 *(12% × $1,300) − (10% − $1,300)

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