A company's defined benefit pension plan incurs current service cost of $4,000,000. his pension plan's assets generated $2,500,000 of income, which exceeded expectations by $500,000. Pension obligations incurred interest cost of $1,500,000, which were $700,000 below expectations. During the year, the company increased benefits in the pension plan and incurred $800,000 for past service cost. What is the pension expense for the year?

• A) $3,800,000
• B) $4,600,000
• C) $5,600,000
• D) $5,000,000

• 2. What are actuarial losses or gains in a defined benefit plan?

  A) Difference arising between the actual and the expected value of plan

  contributions.

  • B) Expected income earned on the pension plan assets.
  • c) Differences arising between the actual and expected values of the obligation.
  • D) Plan amendments that retrospectively improve pension plan benefits.