Exercise 17-16 (Algo) Determine and record pension expense and gains and losses; funding and retiree benefits [LO17-6, 17-7]

Actuary and trustee reports indicate the following changes in the PBO and plan assets of Douglas-Roberts Industries during 2021:

Prior service cost at Jan. 1, 2021, from plan amendment at the

beginning of 2018 (amortization: $6 million per year)$42millionNet lossAOCI at Jan.1, 2021 (previous losses exceeded previous gains)$190millionAverage remaining service life of the active employee group10yearsActuary's discount rate7%

($ in millions)PlanPBOAssetsBeginningof 2021$900Beginningof 2021$500Service cost60Return on plan assets,8% (10% expected)40Interest cost, 7%63Loss (gain) on PBO(14)Cash contributions101Less: Retiree benefits(35)Less: Retiree benefits(35)Endof 2021$974Endof 2021$606