Gorky-Park Corporation provides postretirement health care benefits to employees who provide at least 12 years of service and reach age 62 while in service. On January 1, 2021, the following plan-related data were available:

On January 1, 2021, Gorky-Park amends the plan to provide certain dental benefits in addition to previously provided medical benefits. The actuary determines that the cost of making the amendment retroactive increases the APBO by $20 million. Management chooses to amortize the prior service cost on a straight-line basis. The servicecost for 2021 is $34 million. The interest rate is 8%.

Required:1. Calculate the postretirement benefit expense for 2021.2. Prepare the journal entry to record the expense.

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($ in millions) Accumulated postretirement benefit obligation Fair value of plan assets Average remaining service period to retirement Average remaining service period to full eligibility $130 none 25 years (same in previous 10 years) 20 years (same in previous 10 years)