A company's defined benefit pension plan had a projected benefit obligation ("PBO") of $265,000 on January 1, 2018. During 2018, pension benefits paid were $40,000. The discount rate for the plan for the year was 10%. Service cost for 2018 was $80,000, The amount of the PBO at December 31, 2018, was: 

A) $225,000. 

B) $305,000. 

C) $331,500. 

D) $345,000.