The Following Information Relates to Schmidt Sausage Co

question 66

Essay

The following information relates to Schmidt Sausage Co.'s defined benefit pension plan during the current reporting year:
Required:
Determine the amount of pension plan assets at fair value on December 31.
$$\begin{array} { l c } & \text { (\$ in millions) }\\\text { Plan assets beginning of the year } & \$ 400 \\\text { Expected return on plan assets }& 40 \\\text { Actual return on plan assets } & 32 \\\text { Cash contributions } & 60\\\text { Amortization of net loss } & 8 \\\text { Retiree benefits }& 9\\\end{array}$$

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Definitions:

Voting Stock

Refers to shares that give the holder the right to vote on corporate matters, such as electing the board of directors.

Controlling Influence

Refers to the power exercised by an entity or individual that holds a majority of voting rights in another business, allowing significant influence over its operations and decisions.

Long-term Investments

Investments made by a company intended to be held for a period exceeding one year, often in bonds, stocks, or real estate.

Debt Investments-HTM

Investments in debt securities intended to be held to maturity, reflecting a long-term investment strategy for earning interest income.