Question

The following refers to the pension spreadsheet (columns have missing amounts) for the current year for Pancho Villa Enterprises (PVE). ($ in millions) Debit(Credit) PBO Plan Assets Prior Service Cost Net (Gain)/Loss Pension Expense Cash Net Pension (Liability)/ Asset Beginning balance 459 69 64 60 Service cost (94 ) Interest cost (34 ) Expected return on assets 64 Gain/loss on assets 6 Amortization of: Prior service cost Net gain/loss (2 ) Loss on PBO (74 ) Contributions to fund 49 Retiree benefits paid Ending balance (539 ) 62 131 What were the retiree benefits paid

Answer 1

Answer:

Retiree benefits paid $62

Explanation:

The computation of the retiree benefits paid is shown below

Opening balance of plan assets $459

Less: Net pension asset $60

Beginning balance of PBO $399

Add: service cost $94

Add: Interest cost $34

Add: PBO loss $74

Less: Ending balance of PBO -$539

Retiree benefits paid $62