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I am needing some help with an accounting problem The Kollar Company has a defined benefit pension plan. Pension information concerning the fiscal years 2016

I am needing some help with an accounting problem

The Kollar Company has a defined benefit pension plan. Pension information concerning the fiscal years 2016 and 2017 are presented below ($ in millions):

Information Provided by Pension Plan Actuary:
a. Projected benefit obligation as of December 31, 2015 = $3,200.
b.

Prior service cost from plan amendment on January 2, 2016 = $600 (straight-line amortization for 10-year average remaining service period).

c. Service cost for 2016 = $640.
d. Service cost for 2017 = $690.
e. Discount rate used by actuary on projected benefit obligation for 2016 and 2017 = 10%.
f. Payments to retirees in 2016 = $500.
g. Payments to retirees in 2017 = $570.
h. No changes in actuarial assumptions or estimates.
i. Net gainAOCI on January 1, 2016 = $370.
j. Net gains and losses are amortized for 10 years in 2016 and 2017.

Information Provided by Pension Fund Trustee:
a. Plan asset balance at fair value on January 1, 2016 = $2,300.
b. 2016 contributions = $660.
c. 2017 contributions = $710.
d. Expected long-term rate of return on plan assets = 12%.
e. 2016 actual return on plan assets = $210.
f. 2017 actual return on plan assets = $260.

Required:
1.

Calculate pension expense for 2016 and 2017. (Do not round intermediate calculations. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).)

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