At December 31, 2015, the following information was provided by the Vargas Corp. pension plan administrator: Fair value of plan assets $4,500,000 Accumulated benefit obligation 5,580,000 Projected benefit obligation 7,400,000 What is the amount of the pension liability that should be shown on Vargas' December 31, 2013 balance sheet? a. $7,400,000 b. $2,900,000 c. $1,820,000 d. $1,080,000