The total periodic pension cost is closest to:

A. 320.

B. 1,020.

C. 1,320.

XYZ SA, a hypothetical company, offers its employees a defined benefit pension plan. Information on XYZ’s retirement plans is presented in Exhibit 2. It also grants stock options to executives. Exhibit 3 contains information on the volatility assumptions used to value stock options.

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EXHIBIT 2 XYZ SA Retirement Plan Information 2009 Employer contributions Current service costs Past service costs Discount rate used to estimate plan liabilities Benefit obligation at beginning of year Benefit obligation at end of year Actuarial loss due to increase in plan obligation 1,000 200 120 7.00% 42,000 41,720 460