The following information pertains to Havana Corporation's defined benefit pension plan:

($ in 000s)	2016	2017
	Beginning balances	Beginning balances
Projected benefit obligation	($6,000)	($6,504)
Plan assets	5,760	6,336
Prior service cost-AOCI	600	552
Net loss-AOCI	720	786

At the end of 2016, Havana contributed $696 thousand to the pension fund and benefit payments of $624 thousand were made to retirees. The expected rate of return on plan assets was 10%, and the actuary's discount rate is 8%. There were no changes in actuarial estimates and assumptions regarding the PBO.

Assume that the amortization of Net loss-AOCI for the year 2016 is $30,000 and the service cost is $700,000.

Using information provided for Havana Corporation and the above assumptions, calculate the 2016 pension expense for Havana Corporation:

A. $682,000
C. $634,000
D. $655,000
B. $622,000
E. None of the other answer choices are correct