Lacy Construction has a noncontributory, defined benefit pension plan. At December 31, 2018, Lacy received the following information:

Projected Benefit Obligation

($ in millions)

Balance, January 1

$

360

Service cost

60

Prior service cost

12

Interest cost (7.5%)

27

Benefits paid

(37

)

Balance, December 31

$

422

Plan Assets	($ in millions)
Balance, January 1		$	240
Actual return on plan assets			27
Contributions 2018			60
Benefits paid			(37	)
Balance, December 31		$	290

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 $12 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 net pension cost for 2018. 2. Prepare the journal entry(s) to record Lacys net pension cost, gains or losses, prior service cost, funding, and payment of retiree benefits for 2018.