Court Ltd. received the following information from its pension plan trustee concerning their defined benefit pension plan for calendar 2020. The corporation uses ASPE.

Jan 1, 2020 Dec 31, 2020

Fair value of plan assets $ 2,100,000 $ 2,250,000

Accrued benefit obligation 2,400,000 2,580,000

For 2020, the current service cost is $ 180,000. The interest rate on the liability is 10% and the actual rate of return on plan assets is 9%.

The pension expense to be reported for 2020 is

Select one:

a.

$265,500

b.

$ 231,000

c.

$ 216,000

d.

$180,000

e.

None of the above.