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

PBO		Plan assets
Balance, January 1	$480,000	Balance, January 1	$259,000
Service cost	190,000	Actual return	34,000
Interest cost	37,000	Annual contribution	119,000
Benefits paid	(84,000)	Benefits paid	(84,000)
Balance, December 31	$623,000	Balance, December 31	$328,000

The long-term expected rate of return on plan assets is 10%. Assuming no other data are relevant, what is the pension expense for the year?

$201,100.

$324,000.

$227,000.

$193,000.