To focus on the core issues, we ignored the income tax effects of the pension amounts. Reproduced below are the journal entries that Global Communications used to record its pension expense and funding in 2021 and the new gain and loss that occurred that year.

	($ in millions)
To Record Pension Expense
Pension expense (total)	43
Plan assets (expected return on plan assets)	27
PBO ($41 service cost + $24 interest cost)		65
Amortization of prior service costOCI (2021 amortization)		4
Amortization of net lossOCI (2021 amortization)		1
To Record Funding
Plan assets	48
Cash (contribution to plan assets)		48
To Record Payment of Benefits
PBO	38
Plan assets (retiree benefits)		38
To Record Gains and Losses
LossOCI (from change in assumption)	23
PBO		23
Plan assets	3
GainOCI (from actual return exceeding expected return)		3

Required: 1. Recast these journal entries to include the income tax effects of the events being recorded. Assume that Globals tax rate is 25%. [Hint: Costs are incurred and recognized for financial reporting purposes now, but the tax impact comes much laterwhen these amounts are deducted for tax purposes as actual payments for retiree benefits occur in the future. As a result, the tax effects are deferred, creating the need to record deferred tax assets and deferred tax liabilities.] 2. Prepare a statement of comprehensive income for 2021, assuming Global's only other sources of comprehensive income were net income of $300 million and a $30 million unrealized holding gain on investments in securities available for sale.

Complete this question by entering your answers in the tabs below.

Req1

Recast these journal entries to include the income tax effects of the events being recorded. Assume that Globals tax rate is 25%. [Hint: Costs are incurred and recognized for financial reporting purposes now, but the tax impact comes much laterwhen these amounts are deducted for tax purposes as actual payments for retiree benefits occur in the future. As a result, the tax effects are deferred, creating the need to record deferred tax assets and deferred tax liabilities.] (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 2 decimal places (i.e., 5,500,000 should be entered as 5.50).)

Req2

Prepare a statement of comprehensive income for 2021, assuming Global's only other sources of comprehensive income were net income of $300 million and a $30 million unrealized holding gain on investments in securities available for sale. (Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50).)

Journal entry worksheet 4 6 Record pension expense. Note: Enter debits before credits General Journal Debit Credit Event 1 Record entry Clear entry View general journal Journal entry worksheet Record gains or losses on PBO. Foto Enter debits before credits. Event General Journal 2 Debit Credit Record entry Clear entry View general journal Journal entry worksheet 3 5 6 > Record gains or losses on plan assets. Note: Enter debits before credits Event General Journal Debit Credit 3 Record entry Clear entry View general journal Journal entry worksheet Record cash funding Noter Entar debits before credits General Journal Debit Credit Event 4 Record entry Clear entry View general journal Journal entry worksheet Record income tax effects. Note: Enter debita before credits General Journal Debit Credit Event 5 Record entry Clear entry View general journal Journal entry worksheet Record retiree benefits. Note: Enter debita before credits General Journal Debit Credit Event 6 Record entry Clear entry View general journal GLOBAL COMMUNICATIONS Statement of Comprehensive Income Year ended December 31, 2021 Amounts in millions Net income Other comprehensive income: Comprehensive income