Sheridan Ltd$.$ initiated a one$-$person pension plan in January $2015$ that promises the employee a pension on retirement according to the following formula: pension benefit $=2\mathrm{.}6\%$ of final salary per year of service after the plan initiation. The employee began employment with Sheridan early in $2015$ at age $33$ and expects to retire at the end of $2041,$ the year in which he turns $60.$ His life expectancy at that time is $21$ years.

Assume that this employee earned an annual salary of $$49,000$ when he joined Sheridan, that his salary was expecte to increas at a rate of $4\%$ per year, and that this remains a reasonable assumption to date. Sheridan considers a discount rate of $8\%$ to be appropriate.

$($b$)$

$($b$)$

What amount of current service cost should Sheridan recognize in $2023$ relative to this plan? Use PV tables, a financial calculator, or Excel functions in your calculation. $($For calculation purposes, use $5$ decimal places as displayed in the factor table provided and final answer to $0$ decimal places, e$.$g$.5,275.)$