Hubbard, Inc

question 8

Multiple Choice

Hubbard, Inc.received the following information from its pension plan trustee concerning the operation of the company's defined-benefit pension plan for the year ended December 31, 2011.
The service cost component of pension expense for 2011 is $840,000 and the amortization of past service cost due to an increase in benefits is $180,000.The rate is 10% and the expected rate of return is 8%.What is the amount of pension expense for 2011?

• A)$1,716,000
• B)$1,680,000
• C)$1,608,000
• D)$1,440,000

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