problem 26 Electronic Distribution has a defined benefit pension plan. Characteristics of the plan during 2016 are as follows: ($ millions): PBO balance, January 1 $480 Plan assets balance, January 1 300 Service cost 75 Interest cost 45 Gain from change in actuarial assumption 22 Benefits paid (36) Actual return on plan assets 20 Contributions 2016 60 The expected long-term rate of return on plan assets was 8%. There were no AOCI balances related to pensions on January 1, 2016, but at the end of 2016, the company amended the pension formula creating a prior service cost of $12 million Required: 1 Calculate the pension expense for 2016. 2. Prepare the journal entry to record pension expense, gains or losses, prior service cost, funding, and payment of benefits for 2016 3. What amount will Electronic Distribution report in its 2016 balance sheet as a net pension asset or net pension liability