Vlad Incs defined benefit pension plan (in thousands):

PBO Plan Assets

January 1, 2017 $5,000 January 1, 2017 $4,000

Service cost 960 Cash contributions 740

Interest cost, 8% ? Actual return on plan assets 9% 360

(10% expected)

Loss (gain) on PBO 90 Retiree benefits paid ?

Retiree benefits paid ?

December 31, 2017 $6,100 December 31, 2017 ?

The balance of Net Gain-AOCI at the beginning of 2017 is $700. There was no amendment on the terms of the pension plan in 2017. The balance of the Prior Service Cost-AOCI at the beginning of 2017 is $800 (amortization: $80 per year). The average remaining service period of the active employees expected to receive the benefits are 10 years.

What is a 2017 pension expense for Vlads plan?

A. $1,040.

B. $1,360.

C. $1,060.

D. $1,020.