Presented below is pension information related to Baked Goods, Inc. for the year 2013.
Service cost $85,000
Interest on projected benefit obligation $52,000
Interest on vested benefits $28,000
Amortization of prior service cost due to increase in benefits $15,000
Expected return on plan assets $56,000
The amount of pension expense to be reported for 2013 is:
a) $81,000.
b) $124,000.
c) $180,000.
d) $96,000.