Zeff Manufacturing provides the following information about its postretirement health care plan for 20X1:

Accumulated postretirement benefit obligation on 1/1	$ 300,000
Fair value of plan assets on 1/1	30,000
Benefits paid to retirees at 12/31	6,500
Service cost	20,000
Recognized prior service cost	10,000
Recognized actuarial loss	7,000
Actual return on plan assets	4,500
Contributions to the plan at 12/31	12,000
Discount rate	8%
Expected long-run rate of return on plan assets	10%

Required:

1. Determine Zeff’s postretirement health care expense in 20X1.

2. Determine the fair value of plan assets at December 31, 20X1.

3. Determine the APBO amount at December 31, 20X1.