Beale Management has a noncontributory, defined benefit pension plan. On December 31, 2021 (the end of Beale's fiscal year), the following pension-related data were available:

Projected Benefit Obligation	($ in millions)
Balance, January 1, 2021		$	580
Service cost			60
Interest cost, discount rate, 5%			29
Gain due to changes in actuarial assumptions in 2021			(13	)
Pension benefits paid			(29	)
Balance, December 31, 2021		$	627

Plan Assets	($ in millions)
Balance, January 1, 2021		$	600
Actual return on plan assets			39
(Expected return on plan assets, $44)
Cash contributions			80
Pension benefits paid			(29	)
Balance, December 31, 2021		$	690

January 1, 2021, balances:	($ in millions)
Pension asset	$	20
Prior service costAOCI (amortization $7 per year)		35
Net gainAOCI (any amortization over 10 years)		100

Required: 1. to 3. Prepare the 2021 journal entries to record pension expense, to record any 2021 gains and losses and the contribution to plan assets and benefit payments to retirees.

• 1

  Record the pension expense.

• 2

  Record the gain on PBO.

• 3

  Record the loss on plan assets.

• 4

  Record the funding of plan assets.

• 5

  Record the payment of benefits.

4. Determine the balances at December 31, 2021, in the PBO, plan assets, the net gainAOCI, and prior service costAOCI [Hint: You might find T-accounts useful.]

Balances on Dec. 31, 2021
($ in millions)
PBO
Plan assets
Net gain - AOCI
Prior service cost - AOCI

5. What amount will Beale report in its 2021 balance sheet as a net pension asset or net pension liability for the funded status of the plan?

Balance Sheet as of 2021
		million