Dawson Plc Amends Its Defined Pension Plan on January 1

Dawson plc amends its defined pension plan on January 1, 2016, resulting in £420,000 of past service cost.The company has 400 active employees, of which 100 vest immediately (25%) and the other 300 (75%) vest in four years.The past service cost applicable to the vested employees is £105,000 and vests immediately.The past service cost related to the unvested employees is £315,000 and vests over five years.How much of past service costs would Dawson include in pension expense in 2016?

A) £420,000
B) £126,000
C) £105,000
D) £168,000