Smith, Inc. has a pension plan with the following data available for 20X1 and 20X2:

20X1

20X2

Service cost

$

30,000

$

34,000

Interest cost

$

18,000

$

20,000

Actual return on plan assets

$

15,000

$

21,600

Beginning of year plan assets

$

200,000

$

240,000

Discount rate

8

%

8

%

Expected return on plan assets

8

%

8

%

Smith's pension expense for 20X2 is:

Multiple Choice

• $54,000.
• $32,400.
• $34,800.
• $34,000.