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Lacy Construction has a noncontributory, defined benefit pension plan. At December 31, 2013, Lacy received the following information: Projected Benefit Obligation ($ in millions) Balance,

Lacy Construction has a noncontributory, defined benefit pension plan. At December 31, 2013, Lacy received the following information: Projected Benefit Obligation ($ in millions) Balance, January 1 $ 500 Service cost 74 Interest cost (5%) 25 Benefits paid (72 ) Balance, December 31 $ 527 Plan Assets ($ in millions) Balance, January 1 $ 370 Actual return on plan assets 42 Contributions 2013 74 Benefits paid (72 ) Balance, December 31 $ 414 The expected long-term rate of return on plan assets was 10%. There were no AOCI balances related to pensions on January 1, 2013. At the end of 2013, Lacy amended the pension formula creating a prior service cost of $26 million. Required: 1. Determine Lacy's pension expense for 2013. 2. Prepare the journal entry(s) to record Lacys pension expense, gains or losses, prior service cost, funding, and payment of retiree benefits for 2013

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