Southeast Technology provides postretirement health care benefits to employees. On January 1, 2011, the following plan-related data were available:

On January 1, 2011, 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 2011 is $114,000.

Required:

1. Calculate the prior service cost amortization for 2011.

2. Calculate the postretirement benefit expense for 2011.