On January 1 of the current year, a firm's defined benefit pension plan is amended to increase the benefits for service already provided by employees through that date. The resulting immediate increase in projected benefit obligation (PBO) is $500 at January 1. The average remaining service period of employees covered by the amendment is ten years. Service cost for the year is $1,500. Actual and expected return on plan assets is $178. The discount rate is 10%. PBO at January 1 , including the effect of the prior service grant, is $2,800, The funding contribution for the current year is $1,800. Compute pension expense for the current year. $2.102 $1,372 $1,652 $1,602