Baker Industries operates a defined benefit pension plan. Information received from the actuary and the trustee related to the Year 2 pension plan includes the following:

Projected benefit obligation, January 1, Year 2 $1,879,000

Service cost 105,000

Interest cost 190,000

Retirement benefits paid 182,000

Employer contribution 155,000

Actual return on plan assets 215,000

Amortization of prior service cost 122,000

Amortization of prior-year net pension loss 37,000

Fair value of pension plan assets, December 31, Year 1 1,825,000

Bakers projected benefit obligation at December 31, Year 2, is

a. $1,777,000

b . $1,959,000

c. $1,992,000

d. $2,019,000

Show all work including formulas