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Newton Inc offers its employees a defined benefit pension plan. Newton Inc epots unde US GAAP. It records actual gains and losses in Other Compehensive

Newton Inc offers its employees a defined benefit pension plan. Newton Inc epots unde US GAAP. It records actual gains and losses in Other Compehensive Income (OCI) and amotizes these amounts over the average remaining service life of its employees when they exceed a threshold. Newton Inc did not record any past service cost in fiscal year 2021.

Below you can find excepts from Newtons pension footnotes:

2020

2021

Sevice cost

3,300

3,500

Interest cost

1,600

1,750

Expected return on plan assets

2,100

1,900

Actual return on plan assets

1,900

2,000

Contibutions to defined benefits plan

2,000

2,100

Benefits paid

1,250

1,350

Pension liability

35,000

42,500

Accumulated OCI losses related to defined benefit plans

4,500

5,100

What is your best appoximation of the net pension expenses recorded in P&L elated to defined benefit plans in the fiscal year 2021?

a. 6,950

b. 6,600

c. 6,250

d. 8,150

e. None of the above

Please explain why the answer is C in detail. Thank you.

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