In 2020, the Rachel Company initiated a defined benefit pension plan. It recorded $240,000 as pension expense and paid $280,000 to a funding agency. As a result, Rachel will report A) pension assets of $280,000 and pension liabilities of $240,000. B) an accrued liability of $50,000. C) service cost of $280,000 and unfunded prior service cost of $40,000. D) prepaid pension cost of $40,000.