Exercise 17-6 (Algo) Changes in the pension obligation; determine service cost [LO17-3, 17-6]

Pension data for David Emerson Enterprises include the following:

	($ in millions)
Discount rate, 12%
Projected benefit obligation, January 1	$	300
Projected benefit obligation, December 31		470
Accumulated benefit obligation, January 1		305
Accumulated benefit obligation, December 31		420
Cash contributions to pension fund, December 31		155
Benefit payments to retirees, December 31		55

Required: Assuming no change in actuarial assumptions and estimates, determine the service cost component of pension expense for the year ended December 31.