Problem $17-16($Algo$)$ Comprehensive$$reporting a pension plan; pension spreadsheet; financial statement effects; two years $[$LO$17-3,17-4,17-5,17-6,17-7,17-8]$

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Actuary and trustee reports indicate the following changes in the PBO and plan assets of Lakeside Cable during $2024$:

Prior service cost at January $1,2024,$ from plan amendment at the beginning of $2022($amortization: $$5$ million per year$)$ $ $35$ million

Net loss$-$pensions at January $1,2024($previous losses exceeded previous gains$)$ $ $50$ million

Average remaining service life of the active employee group $10$ years

Actuary$$s discount rate $9\%$

$($$ in millions$)$

PBO Plan Assets

Beginning of $2024$ $ $200$ Beginning of $2024$ $$150$

Service cost $90$

Interest cost, $9\%18$ Return on plan assets, $8\mathrm{.}0\%(10\%$ expected$)12$

Loss $($gain$)$ on PBO $(2)$ Cash contributions $44$

Less: Retiree benefits $(6)$ Less: Retiree benefits $(6)$

End of $2024$ $ $300$ End of $2024$ $$200$

Assume the following actuary and trustee reports indicating changes in the PBO and plan assets of Lakeside Cable during $2025$:

$($$ in millions$)$

PBO Plan Assets

Beginning of $2025$ $ $300$ Beginning of $2025$ $ $200$

Service cost $41$

Interest cost, $9\%27$ Return on plan assets, $15\%(10\%$ expected$)30$

Loss $($gain$)$ on PBO $4$ Cash contributions $33$

Less: Retiree benefits $(19)$ Less: Retiree benefits $(19)$

End of $2025$ $ $353$ End of $2025$ $ $244$

Problem $17-16($Algo$)$ Part $4$

$4-$a$.$ Determine Lakeside$$s pension expense for $2025.$

$4-$b$.$ Prepare the appropriate journal entries to record the expense, the cash funding of plan assets, and payment of benefits to retirees.