Reproduced below are the journal entries related to Illustration 17-12 in this chapter that Global Communications used to record its pension expense and funding in 2018 and the new gain and loss that occurred that year. To focus on the core issues, we ignored the income tax effects of the pension amounts.

Required:
1. Recast these journal entries to include the income tax effects of the events being recorded. Assume that Global's tax rate is 40%.
2. Prepare a statement of comprehensive income for 2018, assuming Global's only other sources of comprehensive income were net income of $300 million and a $30 million unrealized holding gain on investments in securities available for sale.

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To Record Pension Expense Pension e Plan assets (expected return on plan assets) ($ in millions) 43 27 xpense (total) PBO ($41 service cost $24 interest cost) Amortization of prior service cost-oCI (2018 amortization) Amortization of net loss-oCI (2018 amortization) 65 4 To Record Funding Plan assets 48 Cash (contribution to plan assets) 48 To Record Payment of Benefits РВО 38 Plan assets (retiree benefits) To Record Gains and Losses Loss-OCI (from change in assumption) 38 23 PBO 23 Plan assets 3 Gain-OCI (from actual return exceeding expected return) 3