To focus on the core issues, we ignored the income tax effects of the pension amounts we recorded in the chapter. Reproduced below are the journal entries from the chapter that Global Communications used to record its pension expense and funding in 2016 and the new gain and loss that occurred that year.

	($ in millions)
To Record Pension Expense
Pension expense (total)	46
Plan assets (expected return on plan assets)	28
PBO ($44 service cost + $25 interest cost)		69
Prior service costAOCI (2016 amortization)		3
Net lossAOCI (2016 amortization)		2
To Record Funding
Plan assets	51
Cash (contribution to plan assets)		51
To Record Payment of Benefits
PBO	45
Plan assets (retiree benefits)		45
To Record Gains and Losses
LossOCI (from change in assumption)	26
PBO		26
Plan assets	3
GainOCI (from actual return exceeding expected return)		3
1. Recast these journal entries to include the income tax effects of the events being recorded. Assume that Globals tax rate is 40%. [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. So, you may want to refer back to Chapter 16 to refresh your memory on these concepts.] 2. Prepare a statement of comprehensive income for 2016 assuming Global's only other sources of comprehensive income were net income of $370 million and a $50 million unrealized holding gain on investments in securities available for sale.