Frisco, Inc. received the following information from its pension plan trustee concerning the operation of the company's defined-benefit pension plan for the year ended December 31, 2018.

January 1, 2018 December 31, 2018

Fair value of pension plan assets $5,400,000 $6,000,000

Projected benefit obligation 5,800,000 6,480,000

Accumulated benefit obligation 1,120,000 1,360,000

Accumulated OCI (Gains / Losses) -0- (120,000)

The service cost component of pension expense for 2018 is $600,000 and the amortization of prior service cost due to an increase in benefits is $100,000. The settlement rate is 8% and the expected rate of return is 9%. What is the amount of pension expense for 2018?

	a.	$660,000
	b.	$600,000
	c.	$678,000
	d.	$796,000