Ernest Corp. started a defined contribution plan in Year 1. In Year 2, the company amended the plan. To pay for the plan amendments, the company agreed to contribute $100,000 for each of the years Year 3, Year 4, and Year 5. Which of the following is the journal entry required to record the last payment in Year 5, assuming a discount rate of 4%?

a) DR Pension payable $104,000; CR Pension expense $4,000; CR Cash $100,000
b) DR Pension expense $96,154; DR Interest expense $3,846; CR Cash $100,000
c) DR Prepaid past service costs $96,154; DR Interest expense $3,846; CR Cash $100,000
d) DR Pension payable $96,154; DR Interest expense $3,846; CR Cash $100,000