Question 12 (3 points)

Panther Company adopted a noncontributory defined benefit pension plan on January 1, 2007.Panther Company uses the benefit/years-of-service method, which results in the following information:

Numbers presented below for the amount funded represent end of the year balances.

2007 2008

Service cost $300,000$450,000

Amount funded $240,000$390,000

Discount rate 10% 10%

Expected rate of return 10% 10%

What is the pension expense for the year ended December 31, 2008?

A.$390,000

B.$426,000

C.$456,000

D.$480,000