The Lotus Company offers employees a defined contribution pension plan. In 2020, Lotus contributed $780,000 as required according to the plan. The pension plan paid $685,000 to retired employees in 2020. Which of the following statements is true?

A. Lotus will record and report pension expense of $685,000.

B. Lotus will record an accrued liability of $95,000.

C. Lotus will record and report pension expense of $780,000.

D. Lotus will recognize prior service cost of $95,000