Presented below is pension information related to Baked Goods, Inc. for the year 2013.
Service cost $96,000
Interest on projected benefit obligation $64,000
Interest on vested benefits $15,000
Amortization of prior service cost due to increase in benefits $19,800
Expected return on plan assets $24,000
The amount of pension expense to be reported for 2013 is:
a) $170,800.
b) $194,800.
c) $155,800.
d) $136,000