Actuary and trustee reports for 2018 indicate the following changes in the PBO and plan assets of Seneca Corporation

Prior service cost at January 1, 2018, from plan amendment at the beginning of 2016 (amortization: $8 million per year)$64 million

Net loss - pensions at January 1, 2018 (previous losses exceeded previous gains $80 million

Average remaining service life of the active employee group 10 years

Actuary's discount rate 8%

PBO Plan Assets

($ in millions) ($ in millions)

Beginning of 2018 $600Beginning of 2018 $400

Service cost 96 Return on plan assets,30 Interest cost, 8%48 7.5% (10% expected) Loss (gain) on PBO(4) Cash contributions 90 Less:Retiree benefits(40) Less:Retiree benefits(40) End of 2018 $ 700 End of 2018 $480

Required:

• Determine Seneca's pension expense for 2018 and prepare the appropriate journal entries to record the expense as well as the cash contribution to plan assets and payment of benefits to retirees.
• Determine the new gains and/or losses in 2018 and prepare the appropriate journal entry to record them.
• What amount will Seneca report in its 2018 balance sheet?Will a net pension asset or net pension liability be reported?