The following pension information was disclosed by Abbott Laboratories:
Continued next page
Required:
a. What is the funded status of the pension plan in 2016 and 2015?
b. How does the funded status affect Abbott's 2016 balance sheet?
c. What is service cost? How does it affect Abbott Labs' total pension expense for the year?
d. How much did Abbott Labs contribute to the pension plan during 2016 How does that compare to the contribution in 2015?
e. What amount of pension benefits were paid to former Abbott Labs' employees during the year?
f. Why do the benefits paid affect both the pension obligation and the pension assets?

Question

The following pension information was disclosed by Abbott Laboratories: 
  Continued next page
Required: 
a. What is the funded status of the pension plan in 2016 and 2015?
b. How does the funded status affect Abbott's 2016 balance sheet?
c. What is service cost? How does it affect Abbott Labs' total pension expense for the year?
d. How much did Abbott Labs contribute to the pension plan during 2016 How does that compare to the contribution in 2015?
e. What amount of pension benefits were paid to former Abbott Labs' employees during the year?
f. Why do the benefits paid affect both the pension obligation and the pension assets?

Quizplus · Accepted Answer

The Answer of The following pension information was disclosed by Abbott Laboratories: 
  Continued next page
Required: 
a. What is the funded status of the pension plan in 2016 and 2015?
b. How does the funded status affect Abbott's 2016 balance sheet?
c. What is service cost? How does it affect Abbott Labs' total pension expense for the year?
d. How much did Abbott Labs contribute to the pension plan during 2016 How does that compare to the contribution in 2015?
e. What amount of pension benefits were paid to former Abbott Labs' employees during the year?
f. Why do the benefits paid affect both the pension obligation and the pension assets?

The Following Pension Information Was Disclosed by Abbott Laboratories