Southeast Technology provides postretirement health care benefits to employees. On January 1, 2021, the following plan-related data were available:

On January 1, 2021, 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 2021 is $114,000.

Required:1. Calculate the prior service cost amortization for 2021.2. Calculate the postretirement benefit expense for 2021.

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($ in thousands) $ 50 Prior service cost-originated in 2016 Accumulated postretirement benefit obligation Fair value of plan assets Average remaining service period to retirement Average remaining service period to full eligibility 530 none 20 years (same in previous 15 years (same in previous 10 years) 10 years)