Jerry Corp., a company whose stock is publicly traded, provides a noncontributory defined benefit pension plan for its employees. The company's actuary has provided the following information for the year ended December 31, 20X5:
Projected benefit obligation $400,000
Plan assets (fair value) 410,000
Service cost 120,000
Interest on projected benefit
obligation 12,000
Amortization of unrecognized
prior service cost 30,000
Expected & actual return on
plan assets 41,000
The market-related asset value equals the fair value plan assets. Prior contributions to the defined benefit pension plan equaled the amount of net periodic pension cost accrued for the previous year end. No contributions have been made for 20X5 pension cost. In its December 31, 20X5 balance sheet Jerry should report an accrued pension cost of:
a. $99,000
b. $121,000
c. $162,000
d. $132,000