Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2018. The provisions of the plan were not made retroactive to prior years . A local bank, engaged as trustee for the plan assets, expects plan assets to earn a 10% rate of return. The actual return was also 10% in 2018 and 2019. A consulting firm, engaged as actuary , recommends 5% as the appropriate discount rate. The service cost is $220,000 for 2018 and $310,000 for 2019. Year end funding is $230,000 for 2018 and $240,000 for 2019. No assumptions or estimates were revised during 2018. Actuary and trustee reports indicate the following changes in the PBO and plan assets of lakeside Cable during 2018

Prior service cost at Jan. 1, 2018, from plan amendment at the beginning of 2016 (amortization: $6 million per year) 50 million Net losspensions at Jan.1, 2018 (previous losses exceeded previous gains) 60 million The average remaining service life of the active employee group 10 year Actuarys discount rate 8%

PBO PLAN Assets Beginning of 2018 $500 Beginning of 2018 $360 Service cost 66 Return on plan assets, Interest cost, 8% 40 7.5% (10% expected) 27 Loss (gain) on PBO (4) Cash contributions 65 Less: Retiree benefits (52) Less: Retiree benefits ) (52) End of 2018 $550 End of 2018 $400

1-a. Determine Lakesides pension expense for 2019. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10). ) Pension expense 2018

1-b. Prepare the appropriate journal entries to record the expense, as well as the cash contribution to plan assets and payment of benefits to retirees. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 10,000,000 should be entered as 10). )

Note: Enter debits before credits. Transaction General Journal Debit Credit View transaction list View journal entry worksheet No Transaction General Journal Debit Credit Transaction General Journal Debit Credit Transaction General Journal Debit Credit