Defined Benefit Plan Pension Expense Components

XYZ Corporation sponsors a defined benefit pension plan for its employees. Under this plan, the company provides a guaranteed payout based on the employee's salary and years of service. Recently, the company's management has been reviewing its financial statements to assess the pension plan's impact on the overall financial position of the company.

When accounting for defined benefit plans, one important element is the recognition of the pension expense in the income statement. Understanding how this expense is calculated is crucial for accurate financial reporting.

Which of the following statements correctly defines the components of the pension expense recognized by XYZ Corporation based on its defined benefit plan?