Refer to the information for Spath Company above. What is the pension expense for the year ended December 31, 2020?
a. $390,000
b. $426,000
c. $456,000
d. $480,000

Spath Company adopted a noncontributory defined benefit pension plan on January 1, 2019. Spath uses the benefit/ years-of-service method, which results in the following information:

The actual rate of return is equal to the expected return, and the company has not made any payments to retirees.

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2019 2020 Service cost Amount funded Discount rate Expected rate of return $ 300,000 $ 450,000 390,000 240,000 10% 10% 10% 10%