The following information relates to the defined benefit pension plan for the McDonald Company for the year ending December 31, 2002.

Present value of defined benefit obligation, Jan. 1 - 4,600,000

Present value of defined benefit obligation, Dec. 31 - 4,729,000

Fair value of plan assets, January 1 - 5,035,000

Fair value of plan assets, December 31 - 5,565,000

Expected return on plan assets - 450,000

Amortization of deferred gain on settlement of plan - 32,500

Employer contributions - 425,000

Benefits paid to retirees - 390,000

Discount rate - 10%

Current service cost for the year would be? show the solution and explain.