The Baton Rouge Company compiled the following information for the current year related to its defined benefit pension plan:
Present value of defined benefit obligation, beginning of year ………….. $1,000,000
Fair value of plan assets, beginning of year ………………………………. 800,000
Service cost, current year …………………………………………………. 50,000
Actuarial gain, current year ………………………………………………. 8,000
Actual return on plan assets, current year ………………………………… 55,000
Effective yield on high-quality corporate bonds, current year …………… 5%
Required:
Determine the amount of defined benefit cost for the current year to be reported in
(a) Net income
(b) Other comprehensive income.