TRM Corporation established a DEFINED BENEFIT PENSION plan in Year5. In Year 8, the following information is available. Service cost = $45,000. Interest cost=$60,000. Actual return on plan assets=$35,000.Expected return on plan assets=$40,000. Net amortization of unrecognized losses=$15,000. If the company contributes $65,000 cash to the pension plan trustee, which one of the following journal entries properly records the payment?
a. DR pension expense $45000, DR prepaid pension cost $20000, CR Cash $65000
b. DR pension expense $60000, DR prepaid pension cost $5000, CR Cash $65000
c. DR pension expense $65000, CR Cash $65000
d. DR pension expense $80000, CR Cash $65000, CR Unfunded accrued pension cost $15000