The information below pertains to the retiree health care plan of Thompson Technologies: Thompson began funding the plan in 2024 with a contribution of $127,000

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The information below pertains to the retiree health care plan of Thompson Technologies: Thompson began funding the plan in 2024 with a contribution of $127,000 to the benefit fund at the end of the year. Retirees were paid $52,000. The actuary’s discount rate is 5%. There were no changes in actuarial estimates and assumptions.

Required:
Determine the following amounts for 2024:
1. Service cost.
2. Postretirement benefit expense.
3. Net benefit liability.

($ in thousands) Accumulated postretirement benefit obligation Plan assets Funded status Prior service cost-AOCI Net gain-AOCI 2024 Beginning Balances $460 0 (460) 120 (50) 2024 Ending Balances $485 75 (410) 110 (49)