The information below pertains to the retiree health care plan of Thompson Technologies:Thompson began funding the plan in 2021 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 2021:1. Service cost.2. Postretirement benefit expense.3. Net benefit liability.

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2021 2021 Ending Beginning ($ in thousands) Accumulated postretirement benefit obligation Plan assets Funded status Prior service cost-AOCI Net gain-AOCI Balances Balances $460 $485 75 (460) (410) 120 110 (50) (49)