Question: Pension data for Millington Enterprises include the following:
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($ in millions)
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Discount rate, 10%
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|
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Projected benefit obligation, January 1
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$360
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Projected benefit obligation, December 31
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465
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Accumulated benefit obligation, January 1
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300
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Accumulated benefit obligation, December 31
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415
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Cash contributions to pension fund, December 31
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150
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Benefit payments to retirees, December 31
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54
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Required: Assuming no change in actuarial assumptions and estimates, determine the service cost component of pension expense for the year ended December 31.