Dharma Initiative, Inc., has a defined benefit pension plan. Characteristics of the plan during 2016 are as follows:

The expected long-term rate of return on plan assets was 8%. There were no AOCI balances related to pensions on January 1, 2016, but at the end of 2016, the company amended the pension formula creating a prior service cost of $24 million. Dharma Initiative prepares its financial statements according to International Financial Reporting Standards (IFRS).

($ in 000s)DBO balance, January 1$960Plan assets balance, January 1600Service cost150Interest cost (10%)96Gain from change in actuarial assumption44Benefits paid(72)Actual return on plan assets40Contributions 2016120

Required:

1. Calculate the pension expense for 2016.

2. Prepare the journal entry to record pension expense, gains or losses, past service cost, funding, and payment of benefits for 2016.