American Metals, Inc. has a defined benefit pension plan. Characteristics of the plan during 2018 follow (in $-millions):

PBO balance, January 1	480
Plan assets balance, January 1	300
Service cost	75
Interest cost	45
Gain from change in actuarial assumption	22
Benefits paid	(36)
Actual return on plan assets	20
2018 contributions	60

The expected long-term rate of return on plan assets was 8%. There were no AOCI balances related to pensions on January 1, 2018, but at the end of 2018 the company amended the pension formula, creating a prior service cost of $12 million.

Required:

1. Calculate pension expense for 2018.
2. Prepare the journal entries to record pension expense, gains or losses, prior service cost, funding, and payment of benefits for 2018.
3. What amount will American Metals, Inc. report in its 2018 balance sheet as a net pension asset or liability?