Lacy Construction has a noncontributory, defined benefit pension plan. At December 31, 2016, Lacy received the following information:

Projected Benefit Obligation	($ in millions)
Balance, January 1	$	560
Service cost		80
Prior service cost		32
Interest cost(5%)		28
Benefits paid		(87	)
Balance, December 31	$	613

Plan Assets	($ in millions)
Balance, January 1	$	430
Actual return on plan assets		45
Contributions 2016		80
Benefits paid		(87	)
Balance, December 31	$	468

The expected long-term rate of return on plan assets was 10%. There were no AOCI balances related to pensions on January 1, 2016. At the end of 2016, Lacy amended the pension formula creating a prior service cost of $32 million.

Assume Lacy Construction prepares its financial statements according to International Financial Reporting Standards and that the actuary's discount rate is the rate on high quality corporate bonds.

Required:

1.

Determine Lacys pension expense for 2016.

2.

Prepare the journal entry(s) to record Lacys pension expense, gains or losses, prior service cost, funding, and payment of retiree benefits for 2016. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millionsrounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) 1. Record the service cost. 2.Record the net interest cost. 3.Record the gain or loss on plan assets. 4.Record the funding. 5.Record the payment of benefits.