Problem 17-12 Determine pension expense; journal entries; two years [LO17-3, 17-4, 17-5, 17-6, 17-7, 17-8]

The Kollar Company has a defined benefit pension plan. Pension information concerning the fiscal years 2013 and 2014 are presented below ($ in millions):

Information Provided by Pension Plan Actuary:

a.	Projected benefit obligation as of December 31, 2012 = $3,050.
b.	Prior service cost from plan amendment on January 2, 2013 = $550 (straight-line amortization for 10-year average remaining service period).
c.	Service cost for 2013 = $630.
d.	Service cost for 2014 = $680.
e.	Discount rate used by actuary on projected benefit obligation for 2013 and 2014 = 10%.
f.	Payments to retirees in 2013 = $490.
g.	Payments to retirees in 2014 = $560.
h.	No changes in actuarial assumptions or estimates.
i.	Net gain