On January 1, 20X2, Paul 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 projected benefit obligation at December 31, 20X2?

A.$977,750

B.$865,250

C.$953,750

D.$917,750