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 20years EPBO, January 1$57,000 EPBO, December 31$62,700 Interest rate 10% Funding and plan assets None

What is the interest cost to be included in the current year's postretirement benefit expense?

Multiple Choice

$1,254.

$1,140.

$1,130.

$5,700.