Answer:
Answer ; Pension Expenses : $7.5million
Explanation:
Calculation of amount that Harvey Hotels report as pension expense in its income statement for the year -
Particulars Explanation Amount
Service cost Given in the question $6.2 million
Add: Interest cost Given in the question $1.4 million
Less: Expected return on plan assets Given in the question $1.2 million
Add: Amortization of prior service cost Given in the question $1.1 million
Pension Expense ($6.2+$1.4-$1.2+$1.1)million $7.5 million
Hence, option - (B) is Correct.