Villa Company has experienced tough competition, leading it to seek concessions from its employees in the company’s pension plan. In exchange for promises to avoid layoff s and wage cuts, the employees agreed to receive lower pension benefits in the future. As a result, Villa amended its pension plan on January 1, 2020, and recorded negative past service cost of $125,000. Current service cost for 2020 is $26,000. Interest expense is $9,000, and interest revenue is $2,500. Actual return on assets in 2020 is $1,500. Compute Villa’s pension expense in 2020.