Bissell Company received the following reports of its defined benefit pension plan for the current calendar year:

PBO					Plan assets
Balance, January 1	$	450,000			Balance, January 1	$	257,000
Service cost		199,000			Actual return		33,000
Interest cost		39,000			Annual contribution		111,000
Benefits paid		(87,000	)		Benefits paid		(87,000	)
Balance, December 31	$	601,000			Balance, December 31	$	314,000

The long-term expected rate of return on plan assets is 10%. Assuming no other data are relevant, what is the pension expense for the year?

Multiple Choice

• $238,000.

• $205,000.

• $212,300.

• $284,000.