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

Assumptions: Expected return on plan assets 7% Discount rate 5%

December 31, 20x6: Fair value of plan assets $ 1,800,000 Projected benefit obligation 2,200,000 Unrecognized prior service cost 255,000 December 31, 20X7: Fair value of plan assets $2,000,000 Projected benefit obligation 2,500,000 Service cost 330,000

Fox makes an annual pension plan contribution of $300,000. The company's employees had an average remaining service life of 15 years on 12/31/x6 and the company expects to pay benefits totaling $290,000 to retired employees in 20x8. Fox has an effective tax rate of 30%. What would Fox report as net periodic pension cost on its December 31, 20x7, income statement?

Group of answer choices

$205,000

$314,000

$331,000

$411,000