The following information applies to Babydoll Company’s defined benefit pension plan:

Projected benefit obligation, December 31, year 7…………………… $ 2,000,000

Projected benefit obligation, December 31, year 8………………………. 2,220,000

Fair value of plan assets, December 31, year 7…………………………… 1,750,000

Fair value of plan assets, December 31, year 8…………………………… 2,025,000

Unrecognized prior service cost, December 31, year 7…………………… 500,000

Year 8 Service cost……………………….……………………………...................….. 200,000

Expected benefits payable –year 9………………………………...........……….. 400,000

Discount rate……………………….……………………….……………........................... 6%

Expected rate of return on plan assets……………………….………..........……. 8%

The company’s employees have an average remaining service life of 10 years. The company has no unrecognized net gains or losses. What is Babydoll’s net periodic pension cost for year 8?

a. $ 208,000

b. $ 221,200

c. $ 230,000

d. $ 243,200