On January 1, 2013, Vasby Software Company adopted a healthcare plan for its retired employees. To determine eligibility for benefits, Vasby retroactively gives credit to the date of hire for each employee. The service cost for 2013 is $8,000. The plan is not funded, and the discount rate is 10%. All employees were hired at age 28 and become eligible for full benefits at age 58. Employee C was paid $7,000 for postretirement healthcare benefits in 2013. On December 31, 2013, the accumulated postretirement benefit obligation for Employees B and C were $77,000 and $41,500, respectively. Additional information on January 1, 2013, is as follows:

Required:
1. Compute the OPRB expense for 2013 if Vasby uses the average remaining service life to amortize the prior service cost.
2. Prepare all the required journal entries for 2013 if the plan is not funded.

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Accumulated Postretirement Employee Status Expected Age Retirement Age Benefit Obligation 65 65 1. Employee 2. Employee 3. Retired 31 55 67 $ 14,000 70,000 45,000 129,000