Actuary and trustee reports indicate the following changes in the PBO and plan assets of Douglas-Roberts Industries during 2016: Prior service cost at Jan. 1, 2016, from plan amendment at the beginning of 2013 (amortization: $4 million per year) $ 28 million Net lossAOCI at Jan.1, 2016 (previous losses exceeded previous gains) $ 80 million Average remaining service life of the active employee group 10 years Actuary's discount rate 7 % ________________________________________ ($ in millions) Plan PBO Assets Beginning of 2016 $ 600 Beginning of 2016 $ 400 Service cost 80 Return on plan assets, 8% (10% expected) 32 Interest cost, 7% 42 Loss (gain) on PBO (14 ) Cash contributions 90 Less: Retiree benefits (38 ) Less: Retiree benefits (38 ) ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ End of 2016 $ 670 End of 2016 $ 484 ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________ 1. Determine Douglas-Roberts' pension expense for 2016 2. Prepare the appropriate journal entries to record the pension expense, to record any 2016 gains and losses, to record the cash contribution to plan assets and to record retiree benefits