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Lacy Construction has a noncontributory, defined benefit pension plan. At December 31, 2016, Lacy received the following information: Projected Benefit Obligation ($ in millions) Balance,

Lacy Construction has a noncontributory, defined benefit pension plan. At December 31, 2016, Lacy received the following information:

Projected Benefit Obligation ($ in millions)
Balance, January 1 $ 360
Service cost 60
Prior service cost 12
Interest cost(7.5%) 27
Benefits paid (37 )
Balance, December 31 $ 422

Plan Assets ($ in millions)
Balance, January 1 $ 240
Actual return on plan assets 27
Contributions 2016 60
Benefits paid (37 )
Balance, December 31 $ 290

The expected long-term rate of return on plan assets was 10%. There were no AOCI balances related to pensions on January 1, 2016. At the end of 2016, Lacy amended the pension formula creating a prior service cost of $12 million.

Required:
1.

Determine Lacy's pension expense for 2016.

Pension Expense :

2.

Prepare the journal entry(s) to record Lacys pension expense, gains or losses, prior service cost, funding, and payment of retiree benefits for 2016. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions. (i.e., 10,000,000 should be entered as 10).)

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