Culver Inc. provides the following information related to its postretirement benefits for the year 2017.

Accumulated postretirement benefit obligation at January 1, 2017$707,500Actual and expected return on plan assets37,400Prior service cost amortization20,500Discount rate9%Service cost79,800

Compute postretirement benefit expense for 2017.

Post retirement benefit expense$

To compute the post retirement benefit Expense, use the following formula:

(Service cost + Interest cost - Actual return of plan assets + Amortization of prior service cost + Gains linked to accumulated PBO - Losses linked to accumulated PBO + Amortization of the transition amount)

Service cost = 79,800

Interest cost (707,500 x 9%) = 63,675

Actual return on plan assets = 37,400

Prior service cost Amortization = 20,500

?Now let's compute using the amount listed above, (note that the problem given does not have gain or loss linked to accumulated PBO as well as Amortization of the transition amount) ,

Post retirement benefit expense = 79,800 + 63,675 - 37,400 + 20,500 = $126,575