Data pertaining to the postretirement health care benefit plan of Sterling Properties include the following for 2018:

	($ in 000s)
Service cost	$	146
Accumulated postretirement benefit obligation, January 1		1,200
Plan assets (fair value), January 1		80
Prior service costAOCI		none
Net gainAOCI (2018 amortization, $1)		105
Retiree benefits paid (end of year)		93
Contribution to health care benefit fund (end of year)		225
Discount rate, 7%
Return on plan assets (actual and expected), 10%

Required: 1. Determine the postretirement benefit expense for 2018. 2. Prepare the appropriate journal entries to record the postretirement benefit expense, funding, and retiree benefits for 2018.