Response to the following problem:
Garner Inc. provides the following information related to its postretirement benefits for the year 2012.
Accumulated postretirement benefit obligation at January 1, 2012 $889,100
Actual and expected return on plan assets 36,460
Prior service cost amortization 21,000
Discount rate 10% Service cost 583,700
Compute postretirement benefit expense for 2012.