70. Kraft, Inc. sponsors a defined benefit pension plan. The following data relates to the operation of the plan for the year 2026. Service cost Contributions to the plan Actual return on plan assets Projected benefit obligation (beginning of year) Fair value of plan assets (beginning of year) Settlement rate $ 345,000 330,000 270,000 3,600,000 2,400,000 10% If the actual return equals the expected return on plan assets, the amount of pension expense reported for 2026 is a. $345,000. b. $435,000. c. $465,000. d. $705,000. Ans: B, LO: 1, Bloom: AP, Difficulty: Moderate, Min: 3, AACSB: Analytic, AICPA BC: None, AICPA AC: Measurement Analysis and Interpretation AICPA PC: Problem Solving, IMA: Reporting, IFRS: None