P19-12 Accounting for an OPRB Plan On January 1, 2013 Vasby Software Company adopted a healthcare plan for its retired employee. To determine eligibility for benefits, Vasby retroactively gives credit to the date of hire for each employee. The service cost for 2013 is $8,000. The plan is not funded and the discount rate is 10%. All employees were hired at age 28 and become eligible for full benefits at age 58. Employee C was paid $7,000 for post retirement healthcare benefits for 2013. On December 31, 2013, the accumulated post retirement benefit obligation for Employee B and C were $77,000 and $41,500 respectively. Additional information on January 1, 2013 is as follows: Employee Status Age Expected Retirement Age Accumulated Postretirement Benefit Obligation 1. Employee 31 65 $14,000 2. Employee 55 65 $70,000 3. Retired 67 - $45,000 $129,000 1. Compute the OPRB expense for 2013 if Vasby uses the average remaining service life to amortize the prior service cost. 2. Prepare all the required journal entries for 2013 if the plan is not funded.