On January 1, 2016, Flash and Dash Company adopted a healthcare plan for its retired employees. To determine eligibility for benefits, the company retroactively gives credit to the date of hire for each employee. The following information is available about the plan:

Service cost $32,550

Accumulated postretirement benefit obligation (1/1/16) 122,400

Expected return on plan assets 0

Amortization of Prior service cost 10,200

Payments to retired employees during 2016 4,280

Interest rate 10%

Average remaining service period of active plan participants (1/1/16) 12 years

Required:

1. Compute the OPRB expense for 2016 if the company uses the average remaining service life to amortize the prior service cost.

2. Prepare the required journal entries for 2016 if the plan is not funded.