In Gryffindor plc, a lump sum benefit is payable on the termination of service and equal to 4 percent of final salary for each year of service. The salary of the only employee, Harry Potter, in year 1 (end) is 20,000 and is assumed to increase at 10 percent (compound) each year. The discount rate used is 10 percent per year. Harry Potter is expected to leave Gryffindor at the end of year 5.

Calculate the service cost and interest expenses to be recognized by Gryffindor in relation to the defined benefit plan for Harry Potter for years 1 and 2, respectively. (Assume that there are no changes in actuarial assumptions. Ignore taxes and plan assets.)