Refer to the situation described in P 17-10. Assume Electronic Distribution prepares its financial statements according to International Financial Reporting Standards (IFRS). Also assume that 10% is the current interest rate on high-quality corporate bonds.

($ in millions)

PBO balance, January 1.............................................$480

Plan assets balance, January 1........................................300

Service cost...............................................................75

Interest cost...............................................................45

Gain from change in actuarial assumption...........................22

Benefits paid...........................................................(36)

Actual return on plan assets...........................................20

Contributions 2018.....................................................60

Required:

1. Calculate the net pension cost for 2018, separating its components into appropriate categories for reporting.

2. Prepare the journal entry to record the components of net pension cost, gains or losses, past service cost, funding, and payment of benefits for 2018.

3. What amount will Electronic Distribution report in its 2018 balance sheet as a net pension asset or net pension liability?