Lacy Construction has a noncontributory, defined benefit pension plan. At December 31, 2016, Lacy received...
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Lacy Construction has a noncontributory, defined benefit pension plan. At December 31, 2016, Lacy received the following information: 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 $12 million. Required: 1. Determine Lacy's pension expense for 2016. 2. Prepare the journal entry(s) to record Lacy's pension expense, gains or losses, prior service cost, funding, and payment of retiree benefits for 2016
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