The following information applies to Lee Corp.'s defined benefit pension plan for Year 1:

Service cost $150,000

Actual return on plan assets 8%

Expected return on plan assets and settlement rate 7%

Amortization of prior service cost 5,000

Plan assets at the beginning of Year 1 500,000

Projected benefit obligation at the beginning of Year 1 500,000

What amount will Lee report as pension expense in its income statement for Year 1?