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Beale Management has a noncontributory, defined benefit pension plan. On December 31, 2021 (the end of Beale's fiscal year), the following pension-related data were available: Projected Benefit Obligation ($ in millions) Balance, January 1, 2021 $ 540 Service cost 56 Interest cost, discount rate, 5% 27 Gain due to changes in actuarial assumptions in 2021 (11) Pension benefits paid (27) Balance, December 31, 2021 $ 585 ($ in millions) $ 570 37 Plan Assets Balance, January 1, 2021 Actual return on plan assets (Expected return on plan assets, $42) Cash contributions Pension benefits paid Balance, December 31, 2021 78 (27) $ 658 January 1, 2021, balances: Pension asset Prior service cost-AOCI (amortization $5 per year) Net gain-AOCI (any amortization over 10 years) ($ in millions) $ 30 25 107 Required: Prepare a pension spreadsheet to show the relationship among the PBO, plan assets, prior service cost, the net gain, pension expense, and the net pension asset. (Enter credit amounts with a minus sign and debit amounts with a positive sign. Enter your answers in millions.) Prior Net Pension (Liability) Plan Pension ($ in millions) PBO Assets Service Cost- IS 25 Net Gain- AOCI $ (107) Expense Cash Asset Balance, Jan. 1, 2021 Is 570 IS 30 $ (540) (56) (27) 56 27 42 (42) Service cost Interest cost, 5% Expected return on assets Adjust for: Loss on assets Amortization of: Prior service cost Net gain Gain on PBO (5) 5 (5) 5 5 (5) 11 (11) (78) X (78) Cash funding Retiree benefits Balance, Dec 31, 2021 27 27 X (21) $ (585) $ 807 IS S (118) 41 4 30

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