Actuary and trustee reports indicate the following changes in the PBO and plan assets of Mahomes Industries during $2024$ :

Prior service cost at January $1,2024,$ from plan amendment at the beginning of $2021$

$($amortization: $$20$ million per year$)$ $ $140$ million

Net loss$-$AOCI at January $1,2024($previous losses exceeded previous gains$)$

Average remaining service life of the active employee group

Actuary's discount rate

$$880$ million

$10$ years

$7\%$

Requlred:

$1-$a$.$ Determine Mahomes's pension expense for $2024.$

$1-$b$,2$ to $4.$ Prepare the appropriate journal entries to record the pension expense, to record any $2024$ gains and losses, to record the

cash contribution to plan assets and to record retiree benefits.

Complete this question by entering your answers in the tabs below.

Req $1$ A

Req $1B$ and $2$

to $4$

Determine Mahomes's pension expense for $2024.$

Note: Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions $($i$.$e$.,10,000,000$ should

be entered as $10).$Actuary and trustee reports indicate the following changes in the PBO and plan assets of Mahomes Industries during $2024$:

Prior service cost at January $1,2024,$ from plan amendment at the beginning of $2021($amortization: $$20$ million per year$)$ $ $140$ million

Net loss$$AOCI at January $1,2024($previous losses exceeded previous gains$)$ $ $880$ million

Average remaining service life of the active employee group $10$ years

Actuary's discount rate $7\%$

$($$ in millions$)$

PBO Plan Assets

Beginning of $2024$ $ $2,200$ Beginning of $2024$ $ $2,000$

Service cost $96$ Return on plan assets, $8\%(10\%$ expected$)160$

Interest cost, $7\%154$

Loss $($gain$)$ on PBO $(30)$ Cash contributions $106$

Less: Retiree benefits $(70)$ Less: Retiree benefits $(70)$

End of $2024$ $ $2,350$ End of $2024$ $ $2,196$

Required:

$1-$a$.$ Determine Mahomes's pension expense for $2024.$

$1-$b$,2.$ to $4.$ Prepare the appropriate journal entries to record the pension expense, to record any $2024$ gains and losses, to record the cash contribution to plan assets and to record retiree benefits.

Journal Entry

$1$

$.$

Record annual pension expense.

$2$

$.$

Record the change in plan assets.

$3$

$.$

Record the change in the PBO.

$4$

$.$

Record the cash contribution to plan assets.

$5$

$.$

Record the retiree benefits paid.