An entity provided the following pension plan information:
Projected benefit obligation - January 1, 2016
3,500,000
Fair value of plan assets - January 1, 2016
2,800,000
Pension benefits paid during the year
250,000
Current service cost for 2016
1,750,000
Past service cost for 2016 (vesting period 5 years)
425,000
Actual return on plan assets
180,000
Contribution to the plan
1,500,000
Actuarial loss due to change in assumptions on projected benefit obligation 200,000
Discount or settlement rate
10%
What is the projected benefit obligation on December 31, 2016?
? 5,775,000
? 5,550,000
? 5,075,000
? 5,975,000