The following information relates to the pension plan for the employees of Polzin Co.: 1/1/07 12/31/07 12/31/08 Accum. benefit obligation $5,280,000 $5,520,000 $7,200,000 Projected benefit obligation 5,580,000 5,976,000 8,004,000 Fair value of plan assets 5,100,000 6,240,000 6,888,000 Market-related value of assets 4,920,000 6,192,000 6,780,000 Unrecognized net (gain) or loss -0- (864,000) (960,000) Settlement rate (for year) 11% 11% Expected rate of return (for year) 8% 7% Polzin estimates that the average remaining service life is 16 years. Polzin's contribution was $378,000 in 2008 and benefits paid were $282,000. The interest cost for 2008 is Answer a. $537,840. b. $607,200. c. $657,360. d. $880,440