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Travis Transportation reported a net loss-AOCI in last year's balance sheet. This year, the company revised its estimate of future salary levels causing its PBO estimate to decline by $12. Also, the $24 million actual return on plan assets was less than the $27 million expected return.
Required: 1) Prepare the appropriate journal entries to record the gain and loss.
2) How do this gain and loss affect Travis' income statement, statement of comprehensive income, and balance sheet?
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