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

Projected benefit obligation $ 2950000

Fair value of plan assets 2700000

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

Service cost $ 335000

Amortization of prior service costs 84000

Contributions 545000

Benefits paid 165000

Actual return on plan assets 440000

Amortization of net gain 23000

The fair value of plan assets at December 31, 2018 is

A. $3390000.

B. $3520000.

C. $2950000.

D. $3246000.