Varnon Company has a defined bencfit pension plan, On December 31 (the end of the fiscal year), the company received the PBO report from the actuary. The following information was included in the seport: ending P8O, $118,000; benefits paid to retirees, $14,000; interest cost, $7,500. The discount rale applied by the actuary was 10%. What was the service cost for the year? $0.500 149.000 506,500 821500