27 - Louie Company has a defined benefit pension plan. On December 31 (the end of the fiscal year), the company received the PBO report from the actuary. The following information was included in the report: ending PBO, $116,000; benefits paid to retirees, $13,000; interest cost, $8,000. The discount rate applied by the actuary was 10%. What was the service cost for the year?

Multiple Choice

• $41,000.

• $5,000.

• $95,000.

• $21,000.