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On December 31, 2018, the following pension-related data were available for CPS Industries' noncontributory, defined...

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Accounting

On December 31, 2018, the following pension-related data were available for CPS Industries' noncontributory, defined benefit pension plan:

Projected Benefit Obligation

($ in millions)

Balance, January 1, 2018

$960

Service cost

164

Interest cost, discount rate, 5%

48

Gain due to changes in actuarial assumptions in 2018

(20)

Pension benefits paid

(80)

Balance, December 31, 2018

$1,072

Plan Assets

Balance, January 1, 2018

$1,000

Actual return on plan assets

80

(Expected return on plan assets, $90)

Cash contributions

140

Pension benefits paid

(80)

Balance, December 31, 2018

$1,140

January 1, 2018, balances:

Prior service cost (amortization $16 per year)

$96

Net gain (any amortization over 15 years)

160

Required:

1) Prepare the 2018 journal entry to record pension expense.

2) How will the statement of comprehensive income be affected by any 2018 gains and losses?

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