Lorrie Corp., a company whose stock is publicly traded, provides a noncontributory defined-benefit pension plan for its employees. The company's actuary has provided the following information for the year ended December 31, 2013: Projected benefit obligation $6,500 Accumulated benefit obligation 5,250 Fair value of plan assets 8,250 Service cost 2,400 Interest on projected benefit obligation 24,0 Amortization of prior service cost 600 Expected and actual return on plan assets 825 The market-related asset value equals the fair value of plan assets. No contributions have been made for 2013 pension cost. In its December 31, 2013 balance sheet, Lorrie should report a pension asset/liability of:

a. Pension liability of $6,500

b. Pension asset of $8,250

c. Pension asset of $1,750

d. Pension liability of $5,250