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Lacy Construction has a noncontributory, defined benefit pension plan. At December 31, 2021, Lacy received the following information: Projected Benefit Obligation Balance, January 1 Service

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Lacy Construction has a noncontributory, defined benefit pension plan. At December 31, 2021, Lacy received the following information: Projected Benefit Obligation Balance, January 1 Service cost Prior service cost Interest cost(5.00) Benefits paid Balance, December 31 ($ in millions) $1,000 84 36 50 (97) $1,073 Plan Assets Balance, January 1 Actual return on plan assets Contributions 2021 Benefits paid Balance, December 31 ($ in millions) $ 470 51 84 (97) $ 508 The expected long-term rate of return on plan assets was 10%. Thele were no AOCI balances related to pensions on January 1, 2021. At the end of 2021, Lacy amended the pension formula creating a prior service cost of $36 million. Required: 1. Determine Lacy's pension expense for 2021. 2. Prepare the journal entry(s) to record Lacy's (a) pension expense, (b) gains or losses, (c) prior service cost. (d) funding, and (e) payment of retiree benefits for 2021. Return to At the end of 2021, Lacy amended the pension formula creating a prior service cost of $36 million. Required: 1. Determine Lacy's pension expense for 2021. 2. Prepare the journal entry(s) to record Lacy's (a) pension expense, (b) gains or losses, (c) prior service cost, (d) funding, and (e) payment of retiree benefits for 2021. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine Lacy's pension expense for 2021. Pension expense $ 86 x million Required 1 Required 2 > RE Prepare the journal entry(s) to record Lacy's (a) pension expense, (b) gains or losses, (c) prior service cost, (d) funding, and (e) payment of retiree benefits for 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions. (.e., 10,000,000 should be entered as 10).) No Transaction General Journal Debit Credit A Pension expense Plan assets 86 X 48 X PBO 134 B B Plan assets 9 48 Gain - OCI 48 Prior service cost - OCI 36 PBO O 36 D D 51 Plan assets Cash X 51 E E PBO . 97 Plan assets 97

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