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

Projected benefit obligation$3,500,000

Fair value of plan assets3,000,000

The settlement rate is 10%. Other data related to the pension plan for 2018 are:

Service cost$300,000

Amortization of prior service costs due to increase in benefits100,000

Contributions500,000

Benefits paid225,000

Actual return on plan assets395,000

Amortization of net gain30,000

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

$4,150,000

$3,925,000

$3,900,000

$3,850,000