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	$	500
Service cost		74
Interest cost (5%)		25
Benefits paid		(72	)
Balance, December 31	$	527

Plan Assets	($ in millions)
Balance, January 1	$	370
Actual return on plan assets		42
Contributions 2013		74
Benefits paid		(72	)
Balance, December 31	$	414

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 $26 million.

Required:

1.	Determine Lacy's pension expense for 2013. (Enter your answer in millions.)

2.	Prepare the journal entry(s) to record Lacy