The following information pertains to Burnel Corporation’s defined benefit pension plan for year 1:
Service…………………………………………………….. $ 160,000
Actual and expected gain on plan assets………………….. 35,000
Unexpected loss on pension plan assets
related to a Year 1 disposal of a subsidiary……………….. 40,000
Amortization of unrecognized prior service cost………….. 5,000
Annual interest on pension obligation…………………….. 50,000
What amount should Burnel report as pension expense in its year 1 Income Statement?
a. $ 250,000
b. $ 220,000
c. $ 210,000
d. $ 180,000