On January 1, 2016, Vasby Software Company adopted a healthcare plan tor its retired employees. To determine eligibility tor benefits, Vasby retroactively gives credit to the date of hire for each employee. The service cost tor 2016 is $8,000. The plan is not funded, and the discount rate is 10%. All employees were hired at age 28 and become eligible for lull benefits at age 58. Employee C was paid $7,000 for post retirement healthcare benefits in 2016. On December 31, 2016, the accumulated postretirement benefit obligation for Employees B and C were $77,000 and $41,500, respectively. Additional information on January 1, 2016, is as follows:

Required:
1. Compute the OPRB expense for 2016 if Vasby uses the average remaining service lift: to amortize the prior service cost.
2. Prepare all the required journal entries for 2016 if the plan is not funded.

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Accumulated Emp oye0 Status Expected Postrofremont Benofit Obligation $14,000 70,000 45,000 $129,000 Age Retirement Age . Employee 31 2, Employee 55 3 Refired 65 65 67