Thank you.

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

PBO					Plan assets
Balance, January 1	$	430,000			Balance, January 1	$	257,000
Service cost		193,000			Actual return		37,000
Interest cost		31,000			Annual contribution		111,000
Benefits paid		(88,000	)		Benefits paid		(88,000	)
Balance, December 31	$	566,000			Balance, December 31	$	317,000

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? $274,000, $198,300, $187,000, $224,000.