Franklin Freightways has provided a defined benefit pension plan for its employees for several years....
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Franklin Freightways 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: $7.3 million, expected return on plan assets: $2.3 million, actual return on plan assets: $2.1 million, interest cost: $2.5 million, payments to retired employees: $3.1 million, and amortization of prior service cost (created when the pension plan was amended causing a drop in the projected benefit obligation): $2.2 million. What amount should Franklin Freightways report as pension expense in its income statement for the year? Multiple Choice $12.0 million $2.5 million $9.9 million $9.7 million
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