Silverado maintains a fully funded pension plan. In 2011, $1 million was paid to retired workers, and

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Question:

Silverado maintains a fully funded pension plan. In 2011, $1 million was paid to retired workers, and workers currently employed by the company earned a portion of the right to receive pension payments expected to total $6 million over their lifetimes. Silverado’s pension expense for 2011 amounts to:

a. $1 million.

b. $6 million.

c. $7 million.

d. Some other amount.