Lacy Construction has a noncontributory, defined benefit pension plan. At December 31, 2018, Lacy received the following information: ($ in millions) $ 700 94 Projected Benefit Obligation Balance, January 1 Service cost Prior service cost Interest cost (5%) Benefits paid Balance, December 31 46 35 (88) $ 787 ($ in millions) $ 570 Plan Assets Balance, January 1 Actual return on plan assets Contributions 2018 Benefits paid Balance, December 31 94 (88) $634 The expected long-term rate of return on plan assets was 10%. There were no AOCI balances related to pensions on January 1, 2018. At the end of 2018, Lacy amended the pension formula creating a prior service cost of $46 million. Assume Lacy Construction prepares its financial statements according to International Financial Reporting Standards and that the actuary's discount rate is the rate on high quality corporate bonds. Required: 1. Determine Lacy's net pension cost for 2018. 2. Prepare the journal entry(s) to record Lacy's net pension cost, gains or losses, prior service cost, funding, and payment of retiree benefits for 2018. Complete this question by entering your answers in the tabs below. Required 1 Required 2