Plan Assets($ in millions)Balance, January 1, 2018$500Actual return on plan assets40( Expected return on plan assets, $45)Cash contributions70Pension benefits paid(40)Balance, December 31, 2018$570January 1, 2018, balances:($ in millions)Pension asset$20Prior service cost-AOCI (amortization $8 peryear )48Net gain-AOCI (any amortization over 15 years)80Required:1. to 3. Prepare the 2018 journal entry to record pension expense, to record any 2018 gains andlosses and the contribution to plan assets and benefit payments to retirees.4. Determine the balances at December 31, 2018, in the PBO, plan assets, the net gain-AOCI,and prior service cost-AOCI [Hint: You might find T-accounts useful.]5. What amount will Beale report in its 2018 balance sheet as a net pension asset or net pensionliability for the funded status of the plan?