Question: 1 ) Hope Inc. has provided a defined benefit pension plan for its employees for several years. At the end of the most recent year,

1) Hope Inc. has provided a defined benefit pension plan for its employees for several years. At the end of the most recent year, the following information was available with regard to the plan: service cost: $7.7 million, expected return on plan assets: $2.7 million, actual return on plan assets: $2.5 million, interest cost: $2.9 million, payments to retired employees:$3.5 million, and amortization of prior service cost (created when the pension plan was amended causing a drop in the projected benefit obligation): $2.6 million.
a) What amount should Hope report as pension expense in its income statement for the year?

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