Leroy Corp. started a defined contribution plan in 2016. In 2017, the company amended the plan. To pay for the plan amendments, the company agreed to contribute $100,000 for each of the years 2018, 2019, and 2020. Leroy is a private company that reports under ASPE. What journal entry is required to record the last payment in 2020, assuming a discount rate of 4%?

Question 4 options:

a)	DR Pension payable $104,000; CR Pension expense $4,000; CR Cash $100,000

b)	DR Pension expense $96,154; DR Interest expense $3,846; CR Cash $100,000

c)	DR Prepaid past service costs (PSCs) $96,154; DR Interest expense $3,846; CR Cash $100,000

d)	DR Pension payable $96,154; DR Interest expense $3,846; CR Cash $100,000