A Company's Postretirement Health Care Benefit Plan Had an APBO

A company's postretirement health care benefit plan had an APBO of $265,000 on January 1, 2018. During 2018, retiree benefits paid were $40,000. The discount rate for the plan for this year was 10%. Service cost for 2018 was $80,000. Plan assets (fair value) increased during the year by $45,000. The amount of the APBO at December 31, 2018, was:

A) $225,000.
B) $305,000.
C) $331,500.
D) $371,500.