The following information is related to the defined benefit pension plan of Dreamworld Company for the year:

Service cost$65,000Contributions to pension plan120,000Benefits paid to retirees154,000Plan assets (fair value), January 1650,000Plan assets (fair value), December 31775,000Actual return on plan assets159,000PBO, January 1945,000PBO, December 31950,500Discount rate10%Long-term expected return on plan assets9%

Assuming no other relevant data exist, what is the pension expense for the year?

Multiple Choice

• $101,000.
• $159,500.
• $99,000.
• $65,000.