The following information is based on an actual annual report. Different names and years are being used. Bond and some of Green's subsidiaries provide certain postretirement medical, dental, and vi- sion care and life insurance for retirees and their dependents and for the surviving dependents of eligible employees and retirees. Generally, the employees become eligible for postretirement benefits if they retire no earlier than age 55 with 10 years of service. The liability for postretire- ment benefits is funded through trust funds based on actuarially determined contributions that consider the amount deductible for income tax purposes. The health care plans are con- tributory, funded jointly by the companies and the participating retirees. The December 31, 2009 and 2008 postretirement benefit liabilities and related data were determined using the January 1, 2009 actuarial valuations. Information related to the accumulated postretirement benefit obligation plan for the years 2009 and 2008 follows:

The assumed discount rates used to determine the benefit obligation as of December 31, 2009 and 2008 were 7.75% and 6.75%, respectively. The fair value of plan assets excludes \($9\) million and \($7\) million held in a grantor trust as of December 31, 2009 and 2008, respectively, for the The components of other postretirement benefit costs, portions of which were recorded as components of construction costs for the years 2009, 2008, and 2007 follow:
payment of postretirement medical benefits.

The other postretirement benefit curtailment losses in December 2009 represent the recognition of \($3,000\) of additional prior service costs and a \($27,000\) increase in the benefit obligations resulting from special termination benefits.
The health care cost trend rates used to measure the expected cost of the postretirement medical benefits are assumed to be 8.0% for pre-Medicare recipients and 6.0% for Medicare recipients for 2009. Those rates are assumed to decrease in 0.5% annual increments to 5% for the years 2018 and 2011, respectively, and to remain level thereafter. The health care cost trend rates, used to measure the expected cost of postretirement dental and vision benefits, are a level 3.5% and 2.0% per year, respectively. Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. A percentage change of one point in the assumed health care cost trend rates would have the following effects:

Required:
1. Assuming an expected rate of return on plan assets for 2009 and 2008 of 8.8% and 9%, respectively, compute the missing amounts in the first table and determine the Net periodic benefit cost for years 2009 and 2008. (Round amounts to nearest million.)
2. Assuming that the employer submitted the \($4,000,000\) of participant contributions directly to the trust, show the journal entry that Bond would make to record its 2009 company (employer) contribution, Net periodic benefit cost, and AOCI effects.
3. Show that the 2009 journal entries result in a balance sheet pension asset (liability) equal to the funded status. Assume that the beginning 2009 balance equals the ending 2008 funded status.

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Years Ended December 31 (S in thousands) 2009 2008 Change in benefit obligation Benefit obligation at beginning of period $1,236,000 $1,139,000 Service cost 41,000 38,000 Interest cost 82,000 78,000 Plan participants' contributions 4,000 3,000 Actuarial loss (gain) (188,000) 25,000 Benefits paid (51,000) (47,000) Special termination benefits 27,000 Benefit obligation at end of period 1,151.000 1,236,000 Change in plan assets Fair value of plan assets at beginning of period 865,000 767,000 Actual return on plan assets 105,000 122,000 Employer contributions 24,000 20,000 Plan participants' contributions Benefits paid 4,000 (51,000) Fair value of plan assets at period-end 947,000 3,000 (47,000) 865,000 Plan assets less than benefit obligations (204,000) (371,000) AOCI-net actuarial (gain) loss (555,000) (352,000) AOCI-prior service cost 41,000 48,000