Abbott and Abbott has a noncontributory, defined benefit pension plan. At December 31, 2021, 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 2021.....................................................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, 2021. 

Required: 

1. Determine Abbott and Abbott’s pension expense for 2021. 

2. Prepare the journal entries to record Abbott and Abbott’s (a) pension expense, (b) funding, and (c) payment for 2021.