Holt Ltd. has a defined benefit pension plan for its 250 employees. Pension information concerning the 2019 and 2020 fiscal years is presented below:

Information provided by the pension plan actuary

Defined benefit obligation (DBO), December 31, 2019	$2,500,000
Past service cost (PSC) from a plan amendment made January 2, 2020	120,000
Current service cost (CSC) for 2020	275,000
2020 interest cost on DBO, based on 10% discount rate	220,000
2020 actuarial gain on DBO arising from a change in estimate	180,000
Benefits paid	190,000
Funding for the year	400,000

Information provided by the pension plan trustee

Fair value of plan assets, January 1, 2020	$2,600,000
Actual return on plan assets	300,000

What is the balance of the DBO at December 31, 2020?

Question 19 options:

a)	$2,305,000

b)	$2,745,000

c)	$2,925,000

d)	$2,935,000