Answer:
The correct answer is option (A).
Step-by-step explanation:
According to the scenario, the computation of the given data are as follows:
Pension Expense = Service Cost + Interest on Projected Benefit Obligation + Amortization of prior service cost due to increase in benefits - Expected return on plan assets - Amortization of net gain
By putting the following value in the formula, we get
Pension Expense = $2,100,000 + $805,000 + $380,000 - $532,000 - $205,000
= $2,548,000