Electronic Distribution has a defined benefit pension plan. Characteristics of the plan during 2016 are as follows: ($ millions): PBO balance, January 1 $480 Plan assets balance, January 1 300 Service...

Electronic Distribution has a defined benefit pension plan. Characteristics of the plan during 2016 are as follows:

($ millions):

PBO balance, January 1 $480

Plan assets balance, January 1 300

Service cost 75

Interest cost 45

Gain from change in actuarial assumption 22

Benefits paid (36)

Actual return on plan assets 20

Contributions 2016 60

The expected long-term rate of return on plan assets was 8%. There were no AOCI balances related to pensions

on January 1, 2016, but at the end of 2016, the company amended the pension formula creating a prior

service cost of $12 million.

Required:

1. Calculate the pension expense for 2016.

2. Prepare the journal entry to record pension expense, gains or losses, prior service cost, funding, and payment

of benefits for 2016.

3. What amount will Electronic Distribution report in its 2016 balance sheet as a net pension asset or net pension

liability?