Electronic Distribution has a defined benefit pension plan. Characteristics of the plan during 2018 are as follows:

	($ millions)
PBO balance, January 1		$	540
Plan assets balance, January 1			350
Service cost			55
Interest cost			35
Gain from change in actuarial assumption			38
Benefits paid			(48)
Actual return on plan assets			30
Contributions 2018			45

The expected long-term rate of return on plan assets was 10%. 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 $19 million. Assume Electronic Distribution prepares its financial statements according to International Financial Reporting Standards (IFRS). Also assume that 10% is the current interest rate on high-quality corporate bonds. Required: 1. Calculate the net pension cost for 2018, separating its components into appropriate categories for reporting. 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 2018. 3. What amount will Electronic Distribution report in its 2018 balance sheet as a net pension asset or net pension liability?

Calculate the net pension cost for 2018, separating its components into appropriate categories for reporting. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Enter credit amounts with a minus sign and debit amounts with a positive sign.)

	($ in millions)
Reported in income statement:
		$0
Reported as OCI:
		0
		$0

Journal entry worksheet

Prepare the journal entry to record the components of net pension cost, gains or losses, past service cost, funding, and payment of benefits for 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

Note: Enter debits before credits.

Event	General Journal	Debit	Credit
1

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

• Required 1
• Required 2
• Required 3

What amount will Electronic Distribution report in its 2018 balance sheet as a net pension asset or net pension liability? (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)