Electronic Distribution has a defined benefit pension plan. Characteristics of the plan during 2016 are as follows:

	($ millions)
PBO balance, January 1		$530
Plan assets balance, January 1		300
Service cost		50
Interest cost		30
Gain from change in actuarial assumption		36
Benefits paid		(46)
Actual return on plan assets		23
Contributions 2016		40

The expected long-term rate of return on plan assets was 9%. 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 $18 million. Assume Electronic Distribution prepares its financial statements according to International Financial Reporting Standards. Also assume that 10% is the current interest rate on high-quality corporate bonds.

Required:

1.

Calculate the net pension cost for 2016, separating its components into appropriate categories for reporting

service cost

net interest cost

Remeasurement gain from assumption change

remeasurement loss on plan aseets

Net pension Cost

2.

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

Record service cost.

Record net interest cost

Record the loss included in OCI.

Record the gain included in OCI.

Record the funding.

Record the payment of benefits.

3.	What amount will Electronic Distribution report in its 2016 balance sheet as a net pension asset or net pension liability?