A company's defined benefit pension plan had a PBO of $270,000 on January 1, 2013. During 2013, pension benefits paid were $43,000. The discount rate for the plan for this year was 11%. Service cost for 2013 was $89,000. Plan assets (fair value) increased during the year by $51,000. The amount of the PBO at December 31, 2013, was:

$227,000.

$388,700.

$345,700.

None of these is correct.

Please include calculations