silver Company has a defined benefit pension plan. On December $31($the end of the fiscal yearr$),$ the company received the PBO report from the actuary. The following information was included in the report: ending PBO, $$120,000$ : benefiss paid to retirees, $$1\mathrm{.}3,000$; interest cost, $$7,500.$ The discount. rate applied by the actuary was $10\%.$

What was the senvice cost for the vear?

$$99,500$

$$50,500$

$$20\mathrm{.}500$

$$5\mathrm{.}500$