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Beale Management has a noncontributory, defined benefit pension plan. On December 31,2024(the end of Beale's...

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Accounting

Beale Management has a noncontributory, defined benefit pension plan. On December $31, 2024 ($ the end of Beale's fiscal year $),$ the following pension $-$ related data were available:

Projected Benefit Obligation $($ $ in millions $)$

Balance, January $1, 2024$ $ $480$

Service cost $82$

Interest cost, discount rate, $5 % 24$

Gain due to changes in actuarial assumptions in $2024 (10)$

Pension benefits paid $(40)$

Balance, December $31, 2024$ $ $536$

Plan Assets $($ $ in millions $)$

Balance, January $1, 2024$ $ $500$

Actual return on plan assets $40$

$($ Expected return on plan assets, $ $45)$

Cash contributions $70$

Pension benefits paid $(40)$

Balance, December $31, 2024$ $ $570$

January $1, 2024,$ balances: $($ $ in millions $)$

Pension asset $ $20$

Prior service costAOCI $($ amortization $ $8$ per year $) 48$

Net gainAOCI $($ any amortization over $15$ years $) 80$

Required:

$1 .$ to $3 .$ Prepare the journal entries required for the pension during $2024 .$

$4 .$ Determine the balances at December $31, 2024,$ in the net gainAOCI $,$ and prior service costAOCI $. [$ Hint: You might find T $-$ accounts useful. $]$

$5 .$ What amount will Beale report in its $2024$ balance sheet as a net pension asset or net pension liability for the funded status of the plan?

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