Question
WestWorld Hotels has provided a defined benefit pension plan for its employees for several years. At the end of the most recent year, the following
WestWorld 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: $7.3 million, expected return on plan assets: $2.3 million, actual return on plan assets: $2.1 million, interest cost: $2.5 million, payments to retired employees: $3.1 million, and amortization of prior service cost (created when the pension plan was amended causing a drop in the projected benefit obligation): $2.2 million. What amount should WestWorld Hotels report as pension expense in its income statement for the year?
$9.7 million | ||
$9.9 million | ||
$12.0 million | ||
$2.5 million |
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