Actuary and trustee reports indicate the following changes in the PBO and plan assets of Chatter Cable Co. during Year 1 and Year 2:

Prior service cost (AOCI) at January 1, Year 1, from a plan amendment several years in the past (amortization, $7 million per year)	$28 million
Net pension loss (AOCI) at January 1, Year 1	$70 million
Plan Amendment at December 30, Year 1 increases PBO (to be amortized over 10 years at $6 million per year, beginning in Year 2)	$60 million
Average remaining service life of the employee group	10 years
Actuarys discount rate	8%
Expected rate of return on plan assets	10%

Chatter uses the minimum amortization of net gains and losses.

in $millions	PBO			Plan Assets
	Year 1	Year 2		Year 1	Year 2
Beginning of year	200	300	Beginning of year	150	180
Service cost	45	48	Actual return	11	27
Loss (gain) on the PBO	(9)	10	Cash contributions	31	30
Retiree benefits	(12)	(17)	Retiree benefits	(12)	(17)

Hints:

For each year, you must calculate Interest Cost, Expected Return on Plan Assets, and the required minimum amortization of the net pension loss.

Required:

• Present all amounts in millions, so that $32 million would be presented as 32.
• Prepare your assignment in an Excel Workbook.
• Place your answers to requirement 2 in the rows following your pension worksheet. Do not place them in columns to the right of your worksheet.

1. Prepare a pension worksheet to determine pension expense and the ending balances in each of the pension-related accounts.

2. Prepare the lines that will appear on the Year 1 and Year 2 balance sheet and income statement related to this pension plan. Show line names and amounts.