On January 1, 2019, Newlin Co. has the following balances:

Defined benefit obligation 2,100,000

Fair value of plan assets 1,800,000

The discount rate is 10%. Other data related to the pension plan for 2019 are:

Service cost 180,000

Past service costs due to increase in benefits 60,000

Contributions 300,000

Benefits paid 105,000

Actual return on plan assets 237,000

Net gain on liability 18,000

The balance of the defined benefit obligation at December 31, 2019 is

Select one:

a. 2,337,000.

b. 2,433,000.

c. 2,385,000.

d. NONE OF THE GIVEN OPTIONS

e. 2,355,000.