Pacific Productions has a noncontributory, defined benefit pension plan. On December 31, 2018 (the end of Pacific's fiscal year), the following pension-related data were available:

Projected Benefit Obligation	(in millions)
Balance, Jan. 1, 2018	$240
Service cost,	41
Interest cost, discount rate, 5%	12
Gain due to actuarial changes in assumptions	(5)
Pension benefits paid	(20)
Balance, De. 31, 2018	$268
Plan Asset
Balance, Jan. 1, 2018	$250
Actual return on plan assets	20
(Expected return on plan assets $22.5)
Cash contributions	35
Pension Benefits Paid	(20)
Balance, De. 31, 2018	285
Jan. 1, 2018, Balances:
Prior Service Cost (amortization $4 per year)	$24
Net gain (any amortization over 15 years)	40

Requirements

1) Determine the pension expense.

2) Prepare the journal entries to record any 2018 gains and losses