The Kollar Company has a defined benefit pension plan. Pension information concerning the fiscal years 2013 and 2014 are presented below ($ in millions): Information Provided by Pension Plan Actuary:
a. Projected benefit obligation as of December 31, 2012 = $3,350.
b. Prior service cost from plan amendment on January 2, 2013 = $650 (straight-line amortization for 10-year average remaining service period).
c. Service cost for 2013 = $650.
d. Service cost for 2014 = $700.
e. Discount rate used by actuary on projected benefit obligation for 2013 and 2014 = 10%.
f. Payments to retirees in 2013 = $510.
g. Payments to retirees in 2014 = $580.
h. No changes in actuarial assumptions or estimates.
i. Net gain—AOCI on January 1, 2013 = $375.
j. Net gains and losses are amortized for 10 years in 2013 and 2014.
Information Provided by Pension Fund Trustee:
a. Plan asset balance at fair value on January 1, 2013 = $2,400.
b. 2013 contributions = $670.
c. 2014 contributions = $720.
d. Expected long-term rate of return on plan assets = 12%.
e. 2013 actual return on plan assets = $220.
f. 2014 actual return on plan assets = $270.
Required: 1. Calculate pension expense for 2013 and 2014. (Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).)
2. Prepare the journal entries for 2013 and 2014 to record pension expense. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).)
3. Prepare the journal entries for 2013 and 2014 to record any gains and losses and new prior service cost. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).)
4. Prepare the journal entries for 2013 and 2014 to record the cash contribution to plan assets and benefit payments to retirees. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field. Enter your answers in millions. (i.e., 10,000,000 should be entered as 10).)