Panther Company adopted a noncontributory defined benefit pension

plan on January 1, 2007. Panther Company uses the benefit/years-of-service method, which results in the following information: Numbers presented below for the amount funded represent end of the year balances.

2007                2008
Service cost                         $300,000        $450,000
Amount funded                    $240,000        $390,000
Discount rate                        10%                10%
Expected rate of return        10%                10%

What is the pension expense for the year ended December 31, 2008?
A.     $390,000
B.     $426,000
C.     $456,000
D.     $480,000