Abbott and Abbott has a noncontributory, defined benefit pension plan. At December 31, 2018, Abbott and Abbott received the following information:

Projected Benefit Obligation ($ in millions)

Balance, January 1...................................................$120

Service cost..............................................................20

Interest cost.............................................................12

Benefits paid............................................................(9)

Balance, December 31..............................................$143

Plan Assets

Balance, January 1...................................................$ 80

Actual return on plan assets...........................................9

Contributions 2018....................................................20

Benefits paid............................................................(9)

Balance, December 31.............................................$100

The expected long-term rate of return on plan assets was 10%. There was no prior service cost and a negligible net loss-AOCI on January 1, 2018.

Required:

1. Determine Abbott and Abbott's pension expense for 2018.

2. Prepare the journal entries to record Abbott and Abbott's pension expense, funding, and payment for 2018.