Scallion Company Received the Following Reports of Its Defined Benefit

Scallion Company received the following reports of its defined benefit pension plan for the current calendar year: $\begin{array}{lrlr}\text { PBO } & & \text { Plan assets } \\\text { Balance, January 1 } & \$ 400,000 & \text { Balance, January 1 } & \$ 250,000 \\\text { Service cost } & 195,000 & \text { Actual return } & 30,000 \\\text { Interest cost } & 32,000 & \text { Annual contribution } & 110,000 \\\text { Benefits paid } & (80,000) & \text { Benefits paid } & (80,000) \\\text { Balance, December 31 } & \$ 547,000 & \text { Balance, December 31 } & \$ 310,000 \\\hline\end{array}$
- The long-term expected rate of return on plan assets is 10%. Assuming no other data are relevant, what is the pension expense for the year?

A) $197,000.
B) $227,000.
C) $172,000.
D) $202,000.