XYZ Sponsors a Defined Contribution Plan for Its Employees

XYZ sponsors a defined contribution plan for its employees.On January 1, Year 1, the company paid $120,000 to the plan's trustee.The trustee called for annual payments of $90,000 to be made annually into the plan.Which of the following best describes the effects of this plan on XYZ's Year 1 financial statements?

A) XYZ would record pension expense of $90,000 and a non-current asset of $30,000.
B) XYZ would record pension expense of $90,000 and a current asset of $30,000.
C) XYZ would record pension expense of $120,000 and no balance sheet amounts.
D) XYZ would record pension expense of $120,000 and a current asset of $30,000.

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