Merciful Industries Has a Beginning PBO Balance of $600,000 and a Settlement

Merciful Industries has a beginning PBO balance of $600,000 and a settlement rate of 6%. What is the journal entry to record interest expense on the pension obligation?

A) $$\begin{array} { | l | r | r | } \hline \text { Pension Expense } & 36,000 & \\\hline \text { Projected Benefit Obligation } & & 36,000 \\\hline\end{array}$$
B) $$\begin{array} { | l | r | r | } \hline \text { Pension Expense } & 36,000 & \\\hline \text { Other Comprehensive Income } & & 36,000 \\\hline\end{array}$$
C) $$\begin{array} { | l | r | r | } \hline \text { Pension Expense } & 600,000 & \\\hline \text { Projected Benefit Obligation } & & 600,000 \\\hline\end{array}$$
D) $$\begin{array} { | l| r | r | } \hline \text { Pension Expense } & 600,000 & \\\hline \text { Other Comprehensive Income } & & 600,000 \\\hline\end{array}$$