Merciful Industries Has a Beginning PBO Balance of $500,000 and a Settlement

Merciful Industries has a beginning PBO balance of $500,000 and a settlement rate of 6%. As a result of an amendment to the current union contract, there are prior service costs of $49,000. What is the journal entry to record the change to the current union contract?

A) $$\begin{array} { | l | r | r | } \hline \text { Pension Expense } & 2,940 & \\\hline \text { Projected Benefit Obligation } & & 2,940 \\\hline\end{array}$$
B) $$\begin{array} { | l | r | r | } \hline \text { Pension Expense } & 30,000 & \\\hline \text { Other Comprehensive Income } & & 30,000 \\\hline\end{array}$$
C) $$\begin{array} { | c | r | r | } \hline \text { Other Comprehensive Income-Prior Service Costs } & 49,000 & \\\hline \text { Projected Benefit Obligation } & & 49,000 \\\hline\end{array}$$
D) $$\begin{array} { | l | r | r | } \hline \text { Pension Expense } & 46,060 & \\\hline \text { Other Comprehensive Income } & & 46,060 \\\hline\end{array}$$