Merciful Industries Has a Beginning PBO Balance of $900,000 and a Settlement

Merciful Industries has a beginning PBO balance of $900,000 and a settlement rate of 6%. The expected return is 7%. The beginning balance of pension plan assets is $1,000,000. What is the journal entry to record the expected return on plan assets?

A) $\begin{array}{|l|r|r|} \hline \text { Pension Plan Assets } & 70,000\\\hline \text { Pension Expense - Expected Return } &&70,000\\\hline \end{array}$

B) $\begin{array}{l}\text { Pension Expense } &63,000\\\text { Other Comprehensive Income }&&63,00\end{array}$
C) $\begin{array}{|l|r|r|} \hline \text { Pension Expense } & 66,500\\\hline \text { Pension Plan Assets } &&66,500\\\hline \end{array}$

D) $$\begin{array} { | l | r | r | } \hline \text { Pension Expense } & 9,000 & \\\hline \text { Other Comprehensive Income } & & 9,000 \\\hline\end{array}$$