Lorin Management Services has an unfunded postretirement benefit plan. On December 31, 2016, the following data were available concerning changes in the plan's accumulated postretirement benefit obligation with respect to one of Lorin's employees:

APBO at the beginning of 2016 = $16,364

Interest cost: ($16,364 X 10%) = 1,636

Service cost: ($44,000 x 1/22) = 2,000

Portion of EPBO attributed to 2016

APBO at the end of 2016 = $20,000

Required:

1. Over how many years is the expected postretirement benefit obligation being expensed (attribution period)?

2. What is the expected postretirement benefit obligation at the end of 2016?

3. When was the employee hired by Lorin?

4. What is the expected postretirement benefit obligation at the beginning of 2016?

Data pertaining to the postretirement health care benefit plan of Sterling Properties include the following for 2016:

Service cost = $124

Accumulated postretirement benefit obligation, January 1= 700

Plan assets (fair value), January 1 = 50

Prior service cost - AOCI = none

Retiree benefits paid (end of year) = 91

Contributions to health care benefit fund (end of year) = 87

Discount rate, 7% = 185

Return on plan assets (actual and expected), 10%

Required:

1. Determine the postretirement benefit expense of 2016.

2. Prepare the appropriate journal entries to record the postretirement benefit expense, funding, and retiree benefits for 2016.