Scallion Company received the following reports of its defined benefit pension plan for the current calendar year:

PBOPlan Assets

Balance, January 1$400,000Balance, January 1$ 250,000

Service cost195,000Actual return30,000

Interest cost32,000Annual contribution110,000

Benefits paid(80,000)Benefits paid(80,000)

Balance, December 31$547,000Balance, December 31$ 310,000

The long-term expected rate of return on plan assets is 10%.

Assuming no other relevant data exists, what was the pension expense for the year?

• A.$202,000.
• B.$197,000.
• C.$227,000.
• D.$172,000.