Abbott and Abbott has a noncontributory, defined benefit pension plan. At December 31, 2011, Abbott and Abbott received the following information:
($in millions)
Projected Benefit Obligation
Balance, January 1
$120
Service cost
20
Interest cost
12
Benefits paid
(9)
Balance, December 31
$143
Plant Assets
Balance, January 1
$80
Actual return on plan assets
9
Contribution 2011
20
Benefits paid
(9)
Balance, December 31
$100
The expected long-term rate of return on plan assets was 10%. There was no prior service cost and a negligible net loss AOCI on January 1, 2011.
Required:
1.Determine Abbott and Abbott s pension expense for 2011.
2.Prepare the journal entries to record Abbott and Abbott s pension expense, funding, and payment for 2011.