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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
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
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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
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Fundamental Accounting Principles
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
20th Edition
978-0078110870
