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

PBO		Plan assets
Balance, January 1	$630,000	Balance, January 1	$550,000
Service cost	369,000	Actual return	57,000
Interest cost	68,000	Annual contribution	227,000
Benefits paid	(96,000)	Benefits paid	(96,000)
Balance, December 31	$971,000	Balance, December 31	$738,000

The long-term expected rate of return on plan assets is 8%. Assuming no other data are relevant, what is the pension expense for the year?

a)$393,000.

b)$380,000.

c)$437,000.

d)$369,000.