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.