Southeast Technology provides postretirement health care benefits to employees. On January 1, 2018, the following plan-related data were available:

($ in thousands)

Prior service cost-originated in 2013...........................................................$ 50

Accumulated postretirement benefit obligation.................................................530

Fair value of plan assets...........................................................................none

Average remaining service period to retirement.........20 years (same in previous 10 years)

Average remaining service period to full eligibility.....15 years (same in previous 10 years)

On January 1, 2018, Southeast amends the plan in response to spiraling health care costs. The amendment establishes an annual maximum of $3,000 for medical benefits that the plan will provide. The actuary determines that the effect of this amendment is to decrease the APBO by $80,000. Management amortizes prior service cost on a straight-line basis. The interest rate is 8%. The service cost for 2018 is $114,000.

Required:

1. Calculate the prior service cost amortization for 2018.

2. Calculate the postretirement benefit expense for 2018.