7. Abbott and Abbott has a noncontributory, defined benefit pension plan. At December 31, 2018, Abbott received the following information:

Projected Benefit Obligation ($ in millions)

Balance, January $100

Service cost 21

Interest cost 10

Benefits paid (10)

Balance, December 31 $121

Plan Assets

Balance, January 1 $ 80

Actual, return on plan assets 10

Contributions 2018 21

Benefits paid (10)

Balance, December 31 $101

The expected long-term rate of return on plan assets was 10%. There was no prior service cost and a negligible net lossAOCI on January 1, 2018.

Required:

1. Determine Abbott and Abbotts pension expense for 2018.
2. Prepare the journal entries record Abbott and Abbotts pension expense, funding, and payment for 2018.