Beale Management has a noncontributory, defined benefit pension plan. On December 31, 2016 (the end of Beale's fiscal year), the following pension-related data were available:

Projected Benefit Obligation ($ in millions)

Balance, January 1, 2016 $ 660

Service cost 68

Interest cost, discount rate, 5% 33

Gain due to changes in actuarial assumptions in 2016 (17)

Pension benefits paid (33)

Balance, December 31, 2016 $ 711

Plan Assets ($ in millions)

Balance, January 1, 2016 $ 680

Actual return on plan assets 43

(Expected return on plan assets, $48)

Cash contributions 84

Pension benefits paid (33)

Balance, December 31, 2016 $774

January 1, 2016, balances: ($ in millions)

Pension asset $20

Prior service costAOCI (amortization $5 per year) 25

Net gainAOCI (any amortization over 10 years) 108

(For all requirements, enter your answers in millions. (i.e., 10,000,000 should be entered as 10).)

Required:

1. to 3.

Prepare the 2016 journal entry to record pension expense, to record any 2016 gains and losses and the contribution to plan assets and benefit payments to retirees. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

1. Record the pension expense

2. Record the gain on PBO

3. Record the loss on assets

4. Record the change in plan assets

5. Record the change in the PBO.

4. Determine the balances at December 31, 2016, in the PBO, plan assets, the net gainAOCI, and prior service costAOCI [Hint: You might find T-accounts useful.]

Balances on Dec. 31, 2016

($ in millions)

PBO ?

Plan Assets ?

Net gain-AOCI ?

Prior service cost-AOCI ?

5. What amount will Beale report in its 2016 balance sheet as a net pension asset or net pension liability for the funded status of the plan?

Balance sheet as on 2016

($ in millions)

Net Pension Asset/Liability ?