Scallion Company received the following reports of its defined benefit pension plan for the current calendar year:

PBO		Plan assets
Balance, January 1	$480,000	Balance, January 1	$257,000
Service cost	198,000	Actual return	35,000
Interest cost	38,000	Annual contribution	112,000
Benefits paid	(81,000)	Benefits paid	(81,000)
Balance, December 31	$635,000	Balance, December 31	$323,000

The long-term expected rate of return on plan assets is 10%. Assuming no other data are relevant, what is the pension expense for the year?

	$236,000.
	$317,000.
	$201,000.
	$210,300.

Answer rating: 100% (QA)

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