Exercise 17-22 IFRS; prior service cost [LO17-7, 17-12] Lacy Construction has a noncontributory, defined benefit pension plan. At December 31, 2018. Lacy received the following information: ($ in millions) $ 749 98 Projected Benefit Obligation Balance, January 1 Service cost Prior service cost Interest cost(5%) Benefits paid Balance, December 31 50 (96) $ 829 ($ in millions) $ 610 62 Plan Assets Balance, January 1 Actual return on plan assets Contributions 2018 Benefits paid Balance, December 31 98 (96) The expected long-term rate of return on plan assets was 10%. There were no AOCI balances related to pensions on January 1, 2018. At the end of 2018. Lacy amended the pension formula creating a prior service cost of $50 million. Assume Lacy Construction prepares its financial statements according to Intemational Financial Reporting Standards and that the actuary's discount rate is the rate on high quality corporate bonds. Required: 1. Determine Lacy's net pension cost for 2018. 2. Prepare the journal entry(s) to record Lacy's net pension cost, gains or losses, prior service cost, funding, and payment of retiree benefits for 2018 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine Lacy's net pension cost for 2018. Net pension cost million Required 1 Required 2 > Required 1 Required 2 Prepare the journal entry(s) to record Lacy's net pension cost, gains or losses, prior service cost, funding, and payment of re benefits for 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. answers in millions rounded to 1 decimal place i.e., 5,500,000 should be entered as 5.5).) View transaction list Journal entry worksheet 2 3 4 5 Record the service cost. Note: Enter debits before credits. Event General Journal Debit Credit Record entry Clear entry View general journal Required 1 Required 2 Prepare the journal entry(s) to record Lacy's net pension cost, gains or losses, prior service cost, funding, and payment of retiree 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 rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) View transaction list Journal entry worksheet Required 1 Required 2 Prepare the journal entry(s) to record Lacy's net pension cost, gains or losses, prior service cost, funding, and payment of retiree 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 rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) View transaction list Journal entry worksheet Required 1 Required 2 Prepare the journal entry(s) to record Lacy's net pension cost, gains or losses, prior service cost, funding, and payment of retiree 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 rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) View transaction list Journal entry worksheet
