Electronic distribution has a defined benefit pension plan. characteristics of the plan during 2018 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 2018 60 the expected long-term rate of return on plan assets was 8%. there were no aoci balances related to pensions on january 1, 2018, but at the end of 2018, the company amended the pension formula creating a prior service cost of $12 million. required: 1. calculate the pension expense for 2018. 2. prepare the journal entry to record pension expense, gains or losses, prior service cost, funding, and payment of benefits for 2018. 3. what amount will electronic distribution report in its 2018 balance sheet as a net pension asset or net pension liability?

Suppose a firm faces a fixed price of output, 푝푝= 1200. the firm hires workers from a union at a daily wage, 푤푤, to produce output according to the production function 푞푞= 2퐸퐸12. there are 225 workers in the union. any union worker who does not work for this firm is guaranteed to find nonunion employment at a wage of $96 per day. a.what is the firm’s labor demand function? b.if the firm is allowed to choose 푤푤, but then the union decides how many workers to provide (up to 225) at that wage, what wage will the firm set? how many workers will the union provide? what is the firm’s output and profit? what is the total income of the 225 union workers? c.now suppose that the union sets the wage, but the firm decides how many workers to hire at that wage (up to 225). what wage will the union set to maximize the total income of all 225 workers? how many workers will the firm hire? what is the firm’s output and profit? what is the total income of the 225 union workers? [hint: to maximize total income of union, take the first order condition with respect to w and set equal to 0.]