On January 1, 2018,Gillock Climbing Academy Instituted a Defined Benefit

Multiple Choice

On January 1, 2018,Gillock Climbing Academy instituted a defined benefit pension plan for its employees. The annual service cost for each year of 2018 and 2019 was $600,000. The interest rate used to determine the projected benefit obligation is 10%. Both the actual and the expected return on plan assets are 8% for both years. Gillock funded the plan in the amount of $400,000 each January 1, beginning on January 1, 2018.
-In the income statement, companies report the service cost component of pension expense:

A) as part of total compensation costs.
B) as part of total service cost that includes past service cost.
C) as part of non-operating income.
D) separate from the other components and outside the subtotal of income from operations.