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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 (5 in millions) Balance,

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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 (5 in millions) Balance, January 1 $ 500 Service cost 74 Pelor service cost 26 Interest cost (5) 25 Benefits paid (22) Balance, December 31 $ 553 Plan Assets Balance, January 1 Actual return on plan assets Contributions, 2021 Benefits paid Balance, December 31 (sin sillions) $ 370 42 74 (22) $ 414 Plan Assets Balance, January 1 Actual return on plan assets Contributions, 2021 Benefits paid tolonce, December 31 (5 in illons $370 42 74 (22) 1.414 The expected long-term rate of return on plan assets was 10% There 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 $26 million Assume Lacy Construction prepares its tinancial statements according to International Financial Reporting Standards (IFRS) and that the actuary's discount rate is the rate on high-quality corporate bonds Required: 1. Determine Lacy's net pension cost for 2021 2. Prepare the journal entry) to record Lacystal net pension cost. (bgains or losses, (o) prior service cost. (d) funding, and (e) payment of retiree benefits for 2021 8 Answer is not complete Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine Lacy's net pension cost for 2021. Ne pension con IS 62% million Required 2 > tud Prepare the journal entry(s) to record Lacy's (a) net pension cost, (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 rounded to 1 decimal place (I.e., 5,500,000 should be entered as 5.5).) Show less View transaction list Journal entry worksheet B D E Record the service cost. Not Enter debits before credits Transaction General Journal Debit Credit A Record entry Cienty View general journal payment oi teuiet veren i 2021 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 Record the gain or loss on plan assets Hote: Enter debits before credits Transaction Debit Credit General Journal Plan assets Remeasurement gain - OCH Record entry Clear entry View general Required 1 Required 2 Prepare the journal entry(s) to record Lacy's (a) net pension cost, (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 rounded to 1 decimal place (I.e., 5,500,000 should be entered as 5.5).) Show less View transaction list Journal entry worksheet Record the payment of retiree benefits. Enter debts before credits General Journal Debit Transaction E Credit Record entry Clear entry View general journal Lacy Construction has a noncontributory, defined benefit pension plan. At December 31, 2021, Lacy received the Projected Benefit Obligation Balance, January 1 Service cost Prior service cost Interest cost(5%) Benefits paid Balance, December 31 ($ in millions) $ 500 74 26 25 (72) $ 553 ($ in millions) $ 370 42 Plan Assets Balance, January 1 Actual return on plan assets Contributions 2021 Benefits paid Balance December 31 74. (72) $ 414 Plan Assets Balance, January 1 Actual return on plan assets Contributions, 2021 Benefits paid Balance, December 31 ($ in millions) $ 370 42 74 (72) $ 414 The expected long-term rate of return on plan assets was 10%. There 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 $26 million Assume Lacy Construction prepares its financial statements according to International Financial Reporting Standards (IFRS) and that the actuary's discount rate is the rate on high-quality corporate bonds. Required: 1. Determine Lacy's net pension cost for 2021 2. Prepare the journal entry(s) to record Lacy's (a) net pension cost. (b) gains or losses. (c) prior service cost. (d) funding, and (e) payment of retiree benefits for 2021

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