Seadriller, Inc. discloses the following pension-related information: PBO (end of 2020): $210,000; benefits paid (during 2020): $10,000; interest cost (during 2020): $8,000; the discount rate applied: 5%. What was the service cost during 2020

a.

$112,000

b.

$12,000

c.

$2,000

d.

$52,000

e.

$32,000