Big Books, Inc. has the following information related to its defined benefit pension plan:

December 31, Year 6:

Projected benefit obligation

$1,950,000

Fair value of plan assets

1,820,000

Unrecognized prior service cost

260,000

December 31, Year 7:

Projected benefit obligation

$2,301,000

Fair value of plan assets

2,116,400

Service cost

286,000

Assumptions:

Discount rate

8%

Expected return on plan assets

10%

Big Books makes an annual pension plan contribution of $260,000. The company's employees had an average remaining service life of 20 years on 12/31/Year 6. The company paid benefits of $91,000 in Year 7 and expects to pay benefits totaling $203,000 to retired employees in Year 8. Big Books has an effective tax rate of 30%. The actual return on plan assets was 7%. What would Big Books report as total net periodic pension cost for Year 7?

A.

$269,100

B.

$276,900

C.

$297,180

D.

$273,000