At the beginning of the current year, Ross Company has a fair value of its plan assets of $100,000. Ross expects an 7% return on investing the plan assets. The actual return was 6%. Which of the following statement is true due to the expectations and actual results described?

a. Pension expense is reduced by $7,000.

b. Pension expense is increased by $7,000.

c. Pension expense is reduced by $1,000.

d. Pension expense is increased by $1,000