Panther Company adopted a noncontributory defined benefit pension plan on January 1, 2007.Panther Company uses the benefit/years-of-service method, which results in the following information: Numbers presented below for the amount funded represent end of the year balances.

20072008

Service cost$300,000$450,000

Amount funded$240,000$390,000

Discount rate10% 10%

Expected rate of return10% 10%

What is the pension expense for the year ended December 31, 2008?

A.$390,000

B.$426,000

C.$456,000

D.$480,000