DeAngelo Yards, Inc. calculated pension expense for its underfunded pension plan as follows:
Required:
Which elements of DeAngelo's balance sheet are affected by the components of pension expense? What are the specific changes in these accounts?
$\begin{array}{lr}&\text { ( } \$ \text { in millions) }\
\text { Service cost } & \$ 448 \
\text { Interest cost } & 300 \
\text { Expected return on the plan assets ( } \$ 200 \text { actual, less } \$ 20 \text { gain) } & (180) \
\text { Amortization of prior service cost } & 16 \
\text { Amortization of net loss } & 4\
\text { Pension expense }&\$588
\end{array}$

Question

DeAngelo Yards, Inc. calculated pension expense for its underfunded pension plan as follows:
Required:
Which elements of DeAngelo's balance sheet are affected by the components of pension expense? What are the specific changes in these accounts?
 $\begin{array}{lr}&\text { ( } \$ \text { in millions) }\
\text { Service cost } & \$ 448 \
\text { Interest cost } & 300 \
\text { Expected return on the plan assets ( } \$ 200 \text { actual, less } \$ 20 \text { gain) } & (180) \
\text { Amortization of prior service cost } & 16 \
\text { Amortization of net loss } & 4\
\text { Pension expense }&\$588
\end{array}$

Quizplus · Accepted Answer

The Answer of DeAngelo Yards, Inc. calculated pension expense for its underfunded pension plan as follows:
Required:
Which elements of DeAngelo's balance sheet are affected by the components of pension expense? What are the specific changes in these accounts?
 $\begin{array}{lr}&\text { ( } \$ \text { in millions) }\
\text { Service cost } & \$ 448 \
\text { Interest cost } & 300 \
\text { Expected return on the plan assets ( } \$ 200 \text { actual, less } \$ 20 \text { gain) } & (180) \
\text { Amortization of prior service cost } & 16 \
\text { Amortization of net loss } & 4\
\text { Pension expense }&\$588
\end{array}$