Renegade Corp. provides its employees with a defined benefit pension plan. The balances as at January 1, 20X4, were as follows:

Pension obligation$7,000,000Plan assets$5,900,000Other information pertaining to the pension plan during 20X4 is as follows:Interest rate used in actuarial assumptions4%Current service cost for the year$590,000Past service cost (improvement in benefits) end of year$60,000Actuarial gain due to a change in assumption$25,000Actual return on plan assets$275,000Remitted to pension trustee end of year$670,000Payments to retirees end of year$640,000

What is the net amount that will be charged to pension expense for Renegade's 20X4 fiscal year end?

a.$699,000

b.$694,000

c.$634,000

d.$674,000