Problem 1: Defined Benefit Pension Plans (27 pts). Actuary and trustee reports indicate the following changes in the PBO and plan assets of Douglas-Roberts Industries during the current year PBO ($ in millions). Plan Assets ($ in millions) Balance, Jan. 1 $400 $600 Balance, Jan. 1 Service cost 80 Actual return on plan assets 32 Interest cost 42 Gain on PBO -14 Expected return on plan assets: 10% Cash contributions 90 Retiree benefits paid -38 Balance, Dec. 31 Retiree benefits paid -38 $670 Balance, Dec. 31 $484 In addition, at Jan. 1, the company has a net loss-AOCI of $80 million. The average remaining service life of employees is estimated at 10 years. Required: a. Determine any amortization of the net loss-AOCI that should be included as a component of pension expense in the current year (4 pts). Cordarr = 10 x 670m=67m 100 10 m- 6m 13m 13m110=1.3m b. Determine pension expense for the year (6 pts). -1 Probl informa Achin Problem 1: Defined Benefit Pension Plans-Continued. For your convenience, the same information is provided again. Actuary and trustee reports indicate the following changes in the PBO and plan assets of Douglas-Roberts Industries during the current year: PBO ($ in millions) Balance, Jan. 1 Plan Assets ($ in millions) $600 Balance, Jan. 1 $400 Service cost 80 Actual return on plan assets 32 Interest cost 42 Gain on PBO -14 Expected return on plan assets: 10% Cash contributions 90 Retiree benefits paid -38 Retiree benefits paid -38 Balance, Dec. 31 $670 Balance, Dec. 31 $484 In addition, at Jan. 1, the company has a net loss-AOCI of $80 million. The average remaining service life of employees is estimated at 10 years. Required: c. Prepare the journal entry (entries) to record pension expense (6 pts).