Zeff Manufacturing provides the following information about its postretirement health care plan for 2017:

Accumulated postretirement benefit obligation on 1/1......$300,000

Fair value of plan assets on 1/1....................................30,000

Benefits paid to retirees at 12/31....................................6,500

Service cost...........................................................20,000

Recognized prior service cost......................................10,000

Recognized actuarial loss.............................................7,000

Actual return on plan assets..........................................4,500

Contributions to the plan at 12/31.................................12,000

Discount rate.............................................................8%

Expected long-run rate of return on plan assets.....................10%

Required:

1. Determine Zeff's postretirement health care expense in 2017.

2. Determine the fair value of plan assets at December 31, 2017.

3. Determine the APBO amount at December 31, 2017.