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	$	57,000
EPBO, December 31	$	59,280
Interest rate		4	%
Funding and plan assets		None

What is the correct entry to record postretirement benefit expense for the current year?

Multiple Choice

• Postretirement benefit expense	3,420
  Cash		3,420

• Postretirement benefit expense	3,420
  APBO		3,420

• Postretirement benefit expense	2,320
  APBO		2,320

• Postretirement benefit expense	4,500
  APBO		4,500