Question

Lacy Construction has a noncontributory, defined benefit pension plan. At December 31, 2018, Lacy received the following information:

Projected Benefit Obligation	($ in millions)
Balance, January 1	700
Service cost	94
Prior service cost	46
Interest cost(5.0%)	35
Benefits paid	(88)
Balance, December 31	787

Plan Assets	($ in millions)
Balance, January 1	570
Actual return on plan assets	58
Contributions 2018	94
Benefits paid	(88)
Balance, December 31	634

Required:
1. Determine Lacy's pension expense for 2018.
2. Prepare the journal entry(s) to record Lacy’s pension expense, gains or losses, prior service cost, funding, and payment of retiree benefits for 2018.​​​​​

Answer 1