TB Problem $17-198($Algo$)$

Oberon Company provides postretirement health care benefits to employees who provide at

least $10$ years of service and reach the age of $65$ while in service. On January $1$ of the current

year, the following plan$-$related data were available.

Net loss$-$postretirement benefit plan

APBO balance

Fair value of plan assets

Average remaining service period to retirement

Average remaining service period to full eligibility

$ $10,430,000$

$$103,100,000$

none

$20\}\backslash$mathrm$\{$ years

$15$ years

On January $1$ of the current year, Oberon amended the plan to provide dental benefits. The

actuary determines that the cost of making the amendment increases the APBO by $$8,700,000.$

Management chooses to amortize this amount on a straight$-$line basis. The service cost is

$$51,000,000.$ The appropriate interest rate is $10\%.$

Required:

Calculate the postretirement benefit expense for the current year. $($Round your answers to the

nearest thousands of dollars.$)$

Answer is complete but not entirely correct.