Babcock Company received the following reports of its defined benefit pension plan for the current...
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Accounting
Babcock Company received the following reports of its defined benefit pension plan for the current calendar year:
| PBO | Plan assets | ||
|---|---|---|---|
| Balance, January 1 | $ 680,000 | Balance, January 1 | $ 530,000 |
| Service cost | 363,000 | Actual return | 58,000 |
| Interest cost | 70,000 | Annual contribution | 227,000 |
| Benefits paid | (95,000) | Benefits paid | (95,000) |
| Balance, December 31 | $ 1,018,000 | Balance, December 31 | $ 720,000 |
The long-term expected rate of return on plan assets is 8%. Assuming no other data are relevant, what is the pension expense for the year?
$363,000
$433,000
$390,600
$375,000
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