Abbott and Abbott

Abbott and Abbott has a noncontributory, defined benefit pension plan.  At December 31, 2011, Abbott and Abbott received the following information:

($ in the millions)

Projected Benefit Organization

Balance, January 1                                                       $120

Service Cost                                                                      20

Interest Cost                                                                     12

Benefits paid                                                                    (9)

Balance, December 31                                               $143

Plan Assets

Balance, January 1                                                      $  80

 Actual return on plan assets                                          9

Contribution 2011                                                          20

Benefits paid (9)

Balance, December 31                                             $100

The expected long-term rate of return on plan assets was 10%.  There was no prior service cost and a negligible net loss- AOCI on January 1, 2011.

Required:

1. Determine Abbott and Abbott’s pension expense for 2011.

2. Prepare the journal entries record Abbott and Abbott’s pension, funding, and payments for 2011.