Lacy Construction has a noncontributory, defined benefit pension plan. At December 31, 2013, Lacy received the following information: Projected Benefit Obligation ($ in millions) Balance, January 1 $ 540 Service cost 78 Interest cost (5%) 27 Benefits paid (82 ) ________________________________________ ________________________________________ ________________________________________ Balance, December 31 $ 563 ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________ Plan Assets ($ in millions) Balance, January 1 $ 410 Actual return on plan assets 44 Contributions 2013 78 Benefits paid (82 ) ________________________________________ ________________________________________ ________________________________________ Balance, December 31 $ 450 ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________ The expected long-term rate of return on plan assets was 10%. There were no AOCI balances related to pensions on January 1, 2013. At the end of 2013, Lacy amended the pension formula creating a prior service cost of $30 million. Assume Lacy Construction prepares its financial statements according to International Accounting Standards. Required: 1. Determine Lacys pension expense for 2013 Pension expense = 2. Prepare the journal entry(s) to record Lacys pension expense, gains or losses, prior service cost, funding, and payment of retiree benefits for 2013