Federal Companies reported the following information in the footnotes to its most recent financial statements:
| Beginning Projected Benefit Obligation (PBO) |
$65,000,000 |
| Ending PBO |
90,000,000 |
| Service Cost |
27,000,000 |
| Interest Cost |
3,000,000 |
| Benefits Paid |
5,000,000 |
| Actual Return on Plan Assets |
7,500,000 |
| Expected Return on Plan Assets |
8,500,000 |
Given the information above, calculate Federal’s total periodic pension cost for the year.
A. $41,000,000.
B. $27,500,000.
C. $22,500,000.
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