On January 1, 2018, Crane Co. has the following balances:

Projected benefit obligation$3450000

Fair value of plan assets2950000

The settlement rate is 9%. Other data related to the pension plan for 2018 are:

Service cost$299000

Amortization of prior service costs due to increase in benefits99000Contributions499000Benefits paid224000

Actual return on plan assets394000

Amortization of net gain29900

The balance of the projected benefit obligation at December 31, 2018 is

$3813500.

$3760500.

$3835500.

$4059500.