Luciana Fashions calculated pension expense for its underfunded pension plan as follows:

Required:
Which elements of Luciana’s balance sheet are affected by the components of pension expense? What are the specific changes in these accounts?

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Service cost Interest cost Expected return on the plan assets ($100 actual, less $10 gain) Amortization of prior service cost Amortization of net loss Pension expense ($ in millions) $224 150 (90) 8 2 $294