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The Kollar Company has a defined benefit pension plan. Pension information concerning the fiscal years 2024 and 2025 are presented below ($ in millions): Information

The Kollar Company has a defined benefit pension plan. Pension information concerning the fiscal years 2024 and 2025 are presented below ($ in millions):

Information Provided by Pension Plan Actuary:

  1. Projected benefit obligation as of December 31, 2023 = $3,950.
  2. Prior service cost from plan amendment on January 2, 2024 = $850 (straight-line amortization for 10-year average remaining service period).
  3. Service cost for 2024 = $690.
  4. Service cost for 2025 = $740.
  5. Discount rate used by actuary on projected benefit obligation for 2024 and 2025 = 10%.
  6. Payments to retirees in 2024 = $550.
  7. Payments to retirees in 2025 = $620.
  8. No changes in actuarial assumptions or estimates.
  9. Net gainAOCI on January 1, 2024 = $465.
  10. Net gains and losses are amortized for 10 years in 2024 and 2025.

Information Provided by Pension Fund Trustee:

  1. Plan asset balance at fair value on January 1, 2024 = $2,800.
  2. 2024 contributions = $710.
  3. 2025 contributions = $760.
  4. Expected long-term rate of return on plan assets = 12%.
  5. 2024 actual return on plan assets = $260.
  6. 2025 actual return on plan assets = $310.

Required:

Calculate pension expense for 2024 and 2025.

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