Question - Panther Company adopted a noncontributory defined benefit pension plan on January 1, 2007. Panther Company uses the benefit/years-of-service method, which results in the following information: Numbers presented below for the amount funded represent end of the year balances.
2007 2008
Service cost $300,000 $450,000
Amount funded $240,000 $390,000
Discount rate 10% 10%
Expected rate of return 10% 10%
What is the pension expense for the year ended December 31, 2008?
A. $390,000
B. $426,000
C. $456,000
D. $480,000