Hicks Cable Company has a defined benefit pension plan. Three alternative possibilities for pension-related data at January 1, 2021, are shown below:

($ in thousands)Case 1Case 2Case 3Net loss (gain)AOCI, Jan. 1$326$(341)$2662021 loss (gain) on plan assets(17)(14)62021 loss (gain) on PBO(29)22(278)Accumulated benefit obligation, Jan. 1(3,010)(2,610)(1,510)Projected benefit obligation, Jan. 1(3,370)(2,730)(1,760)Fair value of plan assets, Jan. 12,8602,7601,610Average remaining service period

of active employees (years)11139

Required:

1.For each independent case, calculate any amortization of the net loss or gain that should be included as a component of pension expense for 2021.

2.For each independent case, determine the net lossAOCI or net gainAOCI as of January 1, 2022.

question 2

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: $4 million per year)$28millionNet lossAOCI at Jan.1, 2021 (previous losses exceeded previous gains)$140millionAverage remaining service life of the active employee group10yearsActuary's discount rate7%

($ in millions)PlanPBOAssetsBeginningof 2021$800Beginningof 2021$600Service cost50Return on plan assets,8% (10% expected)48Interest cost, 7%56Loss (gain) on PBO(9)Cash contributions96Less: Retiree benefits(30)Less: Retiree benefits(30)Endof 2021$867Endof 2021$714

Required:

1-a.Determine Douglas-Roberts's pension expense for 2021.

1-b, 2. to 4.Prepare the appropriate journal entries to record the pension expense, to record any 2021 gains and losses, to record the cash contribution to plan assets and to record retiree benefits