1. Determine Broncos' pension expense for 20x1 and prepare the appropriate journal entries to record the expense as well as the cash contribution to plan assets. SHOW WORK.

2. Prepare the appropriate journal entries to record any 20x1 gains and losses.

I. Actuary and trustee reports indicate the following changes in the PBO and plan assets of Broncos Sports Inc during 20x1: Prior service cost at Jan. 1, 20x1, from plan amendment at the beginning of 20x0 (amortization: $2 million per year) $14 million Net loss-AOCI at Jan.1, 20x1 (previous losses exceeded previous gains) $40 million Average remaining service life of the active employee group Actuary's discount rate 7% 10 years (S in millions) Beginning of 20x1 PBO $300 PLAN ASSETS $200 Beginning of 201x1 Return on plan assets, 8% (10% expected 16 40 21 (7) Cash contributions 45 Service cost Interest cost, 7% Loss (gain on PBO Less: Retiree benefits End of 20x1 (19) $335 Less: Retiree benefits End of 20x1 (19) $242