12.

The following data are for Guava Company's retiree health care plan for the current calendar year.

Number of employees covered	5
Years employed as of January 1	4 (each)
Attribution period	20 years
EPBO, January 1	$60,000
EPBO, December 31	$65,400
Interest rate	9%
Funding and plan assets	None

What is the service cost to be included in the current year's postretirement benefit expense? (Round your answer to the nearest whole dollar.)

a) $3,000

b) $4,400

c) $3,270

d) $3,180