The information below pertains to the retiree health care plan of Thompson Technologies:
Thompson began funding the plan in 2011 with a contribution of $127,000 to the benefit fund at the end of the year. Retirees were paid $52,000. The actuary's discount rate is 5%. There were no changes in actuarial estimates and assumptions.
Required:
Determine the following amounts for 2011:
1. Service cost.
2. Postretirement benefit expense.
3. Net postretirement benefit liability