Beale Management has a noncontributory, defined benefit pension plan. On December 31, 2024 (the end...

Projected Benefit Obligation	($ in millions)
Balance, January 1, 2024	$ 700
Service cost	72
Interest cost, discount rate, 5%	35
Gain due to changes in actuarial assumptions in 2024	(19)
Pension benefits paid	(35)
Balance, December 31, 2024	$ 753

Plan Assets	($ in millions)
Balance, January 1, 2024	$ 720
Actual return on plan assets	45
(Expected return on plan assets, $50)
Cash contributions	86
Pension benefits paid	(35)
Balance, December 31, 2024	$ 816

January 1, 2024, balances:	($ in millions)
Pension asset	$ 20
Prior service costAOCI (amortization $7 per year)	35
Net gainAOCI (any amortization over 10 years)	112

1. to 3. Prepare the journal entries required for the pension during 2024.

4. Determine the balances at December 31, 2024, in the net gainAOCI, and prior service costAOCI. [Hint: You might find T-accounts useful.]

5. What amount will Beale report in its 2024 balance sheet as a net pension asset or net pension liability for the funded status of the plan?

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