Pension data for Matta Corporation include the following for the current calendar year:
Required:
Assuming no change in actuarial assumptions and estimates, determine the service cost component of pension expense for the current year.
$\begin{array}{lr}&\text { ( } \$ \text { in millions) }\
\text { Discount rate, } 10 \%\
\text { PBO, January 1 } & \$ 360 \
\text { PBO, December 31 } & 450 \
\text { ABO, January 1 } & 200 \
\text { ABO, December 31 } & 275 \
\text { Cash contributions to pension fund, December 31 } & 100 \
\text { Benefit payments to retirees, December 31 } & 54
\end{array}$

Question

Pension data for Matta Corporation include the following for the current calendar year:
Required:
Assuming no change in actuarial assumptions and estimates, determine the service cost component of pension expense for the current year.
 $\begin{array}{lr}&\text { ( } \$ \text { in millions) }\
\text { Discount rate, } 10 \%\
\text { PBO, January 1 } & \$ 360 \
\text { PBO, December 31 } & 450 \
\text { ABO, January 1 } & 200 \
\text { ABO, December 31 } & 275 \
\text { Cash contributions to pension fund, December 31 } & 100 \
\text { Benefit payments to retirees, December 31 } & 54
\end{array}$

Quizplus · Accepted Answer

The Answer of Pension data for Matta Corporation include the following for the current calendar year:
Required:
Assuming no change in actuarial assumptions and estimates, determine the service cost component of pension expense for the current year.
 $\begin{array}{lr}&\text { ( } \$ \text { in millions) }\
\text { Discount rate, } 10 \%\
\text { PBO, January 1 } & \$ 360 \
\text { PBO, December 31 } & 450 \
\text { ABO, January 1 } & 200 \
\text { ABO, December 31 } & 275 \
\text { Cash contributions to pension fund, December 31 } & 100 \
\text { Benefit payments to retirees, December 31 } & 54
\end{array}$

Pension Data for Matta Corporation Include the Following for the Current