Question: lacy construction has a noncontributory defined benefit pension plan at...
Lacy Construction has a noncontributory, defined benefit pension plan. At December 31, 2016, Lacy received the following information:
|Projected Benefit Obligation||($ in millions)|
|Balance, January 1||$||580|
|Prior service cost||34|
|Balance, December 31||$||633|
|Plan Assets||($ in millions)|
|Balance, January 1||$||450|
|Actual return on plan assets||50|
|Balance, December 31||$||490|
The expected long-term rate of return on plan assets was 10%. There were no AOCI balances related to pensions on January 1, 2016. At the end of 2016, Lacy amended the pension formula creating a prior service cost of $34 million.
Determine Lacy's pension expense for 2016.
Prepare the journal entry(s) to record Lacy’s pension expense, gains or losses, prior service cost, funding, and payment of retiree benefits for 2016. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions. (i.e., 10,000,000 should be entered as 10).)