On January 1, 20X2, Jeff Co.s defined benefit pension plan had plan assets with a fair value of $750,000, and a projected plan obligation of $875,000. In addition:

Actual and expected return on plan assets 7%

Interest cost 9%

Service costs - $24,000

Unamortized prior service cost - $120,000

Employer contributions to the plan - $45,000

Distributions to employees from the plan - $60,000

Assume that pension expense is $80,000, what will be the amount in plan assets at December 31, 20X2?

$708,750

$735,000

$787,500

$795,000