On January 2, Year 1, Pinker Co. established a noncontributory defined benefit pension plan covering all employees and contributed $400,000 to the plan. At December 31, Year 1, Pinker determined that the Year 1 service and interest costs on the plan were $760,000. The expected and the actual rate of return on plan assets for Year 1 was 10%. Pinker's pension expense has no other components. What amount should Pinker report in its December 31, Year 1, balance sheet as liability for pension benefits? a. $280,000 b. $320,000 C. $360,000 d. $720,000