Davidian Enterprises had the following data pertaining to it's health care beneift plan for the current calendar year:
| Service Cost |
$150,000 |
| APBO, Jan 1 |
$800,000 |
| Plan Assets, Fair Value |
$80,000 |
| Prior Service Cost (current year amortizaion, $2,000) |
$90,000 |
| Retiree Benefits Paid (end of year) |
$90,000 |
| Net Gain (Current year amortization, $1,000) |
$92,000 |
| Contribution to health care fund (end of year) |
$85,000 |
| Return on Plan Assets (actual and expected) |
10% |
| Discount Rate |
8% |
Determine Davidian's postretirement benefit expense for the current year and prepare the journal entries to record the benefit expense and funding for the current year.