The following data are available pertaining to Household Appliance Company's retiree health care plan for 2021:

Number of employees covered 2

Years employed as of January 1, 2021 2 [each]

Attribution period 25 years

Expected postretirement benefit obligation, Jan. 1 $ 67,000

Expected postretirement benefit obligation, Dec. 31 $ 70,350

Interest rate 5 %

Funding none

Required:

1. What is the accumulated postretirement benefit obligation at the beginning of 2021?

2. What is interest cost to be included in 2021 postretirement benefit expense?

3. What is service cost to be included in 2021 postretirement benefit expense?

4. Prepare the journal entry to record the postretirement benefit expense for 2021.