Merl Ltd$.$ has a $31$ December year$-$end. As of $1$ January $20$X$1,$ the net pension asset was $25,000.$ The maximum future benefit available to Merl Ltd$.$ in the form of future contribution reductions $($asset ceiling$)$ was $25,000.$ The $20$X$1$ service costs amounted to $5,000$ and the assumed discount rate at the beginning of the period amounted to $3\%.$ During $20$X$1,$ contributions of $8,000$ were made into the pension plan.

If the maximum future benefit available to Merl Ltd$.$ is $25,000,$ what is the amount of net pension asset at $31$ December $20$X$1?$

$28,000[1$ January $20$X$1$: $25,000($asset$)5,000($service cost$)+8,000($contributions$)]$

$25,000[$asset ceiling of $25,000]$

$26,500[1$ January $20$X$1$: $25,000($asset$)5,000($service cost$)1,500($interest charge of $3\%$ of $50,000)+8,000($contributions$)]$