Actuary and trustee reports indicate the following changes in the PBO and plan assets of Reeves Uniforms during 2013 (all dollar numbers in millions): Prior service cost at Jan. 1, 2013, from a plan amendment at the beginning of 2011 of $80 million. Active employees at the inception had an average remaining service life of 10 year at the time of adoption. $64 million Net Losspensions at Jan. 1, 2013 $100 million Average remaining service life of the active employee group 15 years Actuarys discount rate 8% Additional data all in millions of dollars. Beginning PBO $700, beginning Plan assets $500, Service cost $96, Return on assets $10 (10% expected return), gain on actuarial assessment of plan obligations $4, Cash contribution to the plan $120 (at end of year), retiree benefits paid $70. At the beginning of 2013 the pension plan was modified to make the retirement better for the employees. This added $105 million to the plan obligations in prior service costs. Required: 1. Prepare a pension spreadsheet to assist you in determining end of 2013 balances in the PBO, plan assets, prior service cost, the net loss-AOCI, and the pension liability-AOCI. (Chart next page) 2. Determine Reeves' pension expense for 2013 and prepare the appropriate journal entries to record the expense as well as the cash contribution to plan assets. 3. Determine the new gains and/or losses in 2013 and prepare the appropriate journal entry to record them. 4. Prepare any other pension related journal entries that would be made in 2013. 5. Calculate all amortizations for 2014. 6. Assume that service cost in 2014 is $105 million and actual return on assets is $80 million. What is the 2014 pension expense?