QUESTION 2 John Company adopted a defined benefit pension plan on January 1, 2015, and prior service credit was granted to employees. The present value of that prior service obligation as of January 1, 2015 was $1,400,000 and is being amortized by the straight-line method over the remaining 20-year service life of the company's active employees. Additional information relating to the company's pension plan for 2015 is presented below: Annual service cost $132.000 Contribution to the plan (December 31, 2015) 390.000 Interest cost 10% Expected and actual) return on plan assets 12% What amount should be recorded in Prepaid/Accrued Pension Cost when recording the 2015 pension expense and funding at December 31, 2015? O a $48,000 O b. $1,200 O C. $94.800 O d. $87,000