At January 1, 2020, Caleb Company had plan assets of $250,000 and a defined benefit obligation of the same amount. During 2020, service cost was $27,500, the discount rate was 10%, actual return on plan assets was $25,000, contributions were $20,000, and benefits paid were $17,500. Based on this information, what would be the defined benefit obligation for Caleb Company at December 31, 2020?

a. $27,500

b. $277,500

c. $285,000

d. $302,500