Data pertaining to the postretirement health care benefit plan of Sterling Properties include the following for 2021: ($ in thousands) Service cost $ 124 Accumulated postretirement benefit obligation, January 1 700 Plan assets (fair value), January 1 60 Prior service costAOCI none Net gainAOCI (2021 amortization, $2) 94 Retiree benefits paid (end of year) 82 Contribution to health care benefit fund (end of year) 170 Discount rate, 8% Return on plan assets (actual and expected), 10%

Required:

1. Determine the postretirement benefit expense for 2021.

2. Prepare the appropriate journal entries to record the (a) postretirement benefit expense, (b) funding, and (c) retiree benefits for 2021.