Chapter 17 Assessment Saved 18 Lacy Construction has a noncontributory, defined benefit pension plan. At December 31, 2018 Lacy received the following information: Projected Benefit Obligation (5 in millions) Balance, January 1 $660 Service cost 90 Prior service cost 42 Interest cost(5.0%) 33 Benefits paid (80) Balance, December 31 $745 Plan Assets Balance, January 1 Actual return on plan assets Contributions 2018 Benefits paid Balance, December 31 (5 in millions) $530 56 (80) $596 ho The expected long-term rate of return on plan assets was 10%. There were no AOCI balances related to pensions on January 1, 2018. At the end of 2018. Lacy amended the pension formula creating a prior service cost of $42 million. Required: 1. Determine Lacy's pension expense for 2018. 2. Prepare the journal entry(s) to record Lacy's pension expense, gains or losses, prior service cost, funding. and payment of retiree benefits for 2018. Complete this question by entering your answers in the tabs below. Type here to search o