M9_PSAModule_9_Problem-Solution_AssignmentProblem_1The_following

M9 PSA

	Module 9 Problem-Solution Assignment:
	Problem 1
	The following information relates to Billy Bob’s Donuts defined benefit pension plan during the current reporting year (All the amounts are in millions): Plan Assets at the beginning of the year $350 Expected Return on Plan Assets 45 Actual return on plan assets 38 Cash Contributions 65 Amortization of net loss 7 Retiree Benefits 8
	Requirements:
	1	Determine the amount of pension plan assets at the fair value on Dec 31.
	Problem 2
	Pension data for the Cookie Monster Company included the following for the current calendar year: Service Cost $115,000 PBO, Jan 1 755,000 Plan Assets, Jan 1 810,000 Amortization of prior service cost 7,000 Amortization of net loss 3,000 Discount Rate= 9% Actual return on Assets=10% Expected Return on Plan assets=9%
	Requirements:
	2	Determine the amount of pension expense.