Smith, Inc. has a pension plan with the following data available for 20X1 and 20X2:

20X120X2Service cost$30,000$34,000Interest cost$18,000$20,000Actual return on plan assets$15,000$21,600Beginning of year plan assets$200,000$240,000Discount rate8%8%Expected return on plan assets8%8%

Smith's pension expense for 20X1 is:

Multiple Choice

• $32,000.
• $30,000.
• $33,000.
• $48,000.