Harvey Hotels has provided a defined benefit pension plan for its employees for several years. At the end of the most recent year, the following information was available with regard to the plan: service cost: $7.8 million, expected return on plan assets: $2.8 million, actual return on plan assets: $2.6 million, interest cost: $3.0 million, payments to retired employees: $3.6 million, and amortization of prior service cost (created when the pension plan was amended causing a drop in the projected benefit obligation): $2.7 million. What amount should Harvey Hotels report as pension expense in its income statement for the year? $3.0 million $10.9 million $10.7 million $13.5 million