Actuary and trustee reports indicate the following changes in the PBO and plan assets of Mahomes Industries during $2024$:

Prior service cost at January $1,2024,$ from plan amendment at the beginning of $2021($amortization: $$20$ million per year$)$ $ $140$ million

Net loss$$AOCI at January $1,2024($previous losses exceeded previous gains$)$ $ $880$ million

Average remaining service life of the active employee group $10$ years

Actuary's discount rate $7\%$

$($$ in millions$)$

PBO Plan Assets

Beginning of $2024$ $ $2,200$ Beginning of $2024$ $ $2,000$

Service cost $96$ Return on plan assets, $8\%(10\%$ expected$)160$

Interest cost, $7\%154$

Loss $($gain$)$ on PBO $(30)$ Cash contributions $106$

Less: Retiree benefits $(70)$ Less: Retiree benefits $(70)$

End of $2024$ $ $2,350$ End of $2024$ $ $2,196$

Required:

$1-$a$.$ Determine Mahomes's pension expense for $2024.$

$1-$b$,2.$ to $4.$ Prepare the appropriate journal entries to record the pension expense, to record any $2024$ gains and losses, to record the cash contribution to plan assets and to record retiree benefits.Actuary and trustee reports indicate the following changes in the PBO and plan assets of Mahomes Industries during $2024$ :

Prior service cost at January $1,2024,$ from plan amendment at the beginning of $2021$

$($amortization: $$20$ million per year$)$ $ $140$ million

Net loss$-$AOCI at January $1,2024($previous losses exceeded previous gains$)$

Average remaining service life of the active employee group

Actuary's discount rate

$$880$ million

$10$ years

$7\%$

Requlred:

$1-$a$.$ Determine Mahomes's pension expense for $2024.$

$1-$b$,2$ to $4.$ Prepare the appropriate journal entries to record the pension expense, to record any $2024$ gains and losses, to record the

cash contribution to plan assets and to record retiree benefits.

Complete this question by entering your answers in the tabs below.

Req $1$ A

Req $1B$ and $2$

to $4$

Determine Mahomes's pension expense for $2024.$

Note: Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions $($i$.$e$.,10,000,000$ should

be entered as $10).$

Journal Entry

$1.$Record annual pension expense.

$2.$Record the change in plan assets.

$3.$Record the change in the PBO.

$4.$Record the cash contribution to plan assets.

$5.$Record the retiree benefits paid.