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, $112,000; benefits paid to retirees, $13,000; interest cost, $7,500. The discount rate applied by the actuary was 10%. What was the service cost for the year?

	$20,500.
	$42,500.
	$5,500.
	$91,500.