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Lacy Construction has a noncontributory, defined benefit pension plan. At December 31, 2018, Lacy received the following information: Projected Benefit Obligation ($in millions) Balance, January

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Lacy Construction has a noncontributory, defined benefit pension plan. At December 31, 2018, Lacy received the following information: Projected Benefit Obligation ($in millions) Balance, January 1 Service cost Prior service cost Interest cost Benefits paid $ 560 80 32 28 5.0%) (87) Balance, December 3:1 $ 613 Plan Assets (s in millions) Balance, January 1 Actual return on plan assets Contributions 2018 Benefits paid $ 430 45 80 (87) Balance, December 3:1 $ 468 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 $32 million Required 1. Determine Lacy's pension expense for 2018 2. Prepare the journal entry(s) to record Lacy's pension expense, gains or losses, prior service cost, funding, and payment of retiree benefits for 2018

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