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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 | $ 60,990 | |
Interest rate | 7% | |
Funding and plan assets | None |
What is the correct entry to record postretirement benefit expense for the current year?
General Journal | Debit | Credit |
---|---|---|
Postretirement benefit expense | 3,848 | |
Cash | 3,848 |
General Journal | Debit | Credit |
---|---|---|
Postretirement benefit expense | 2,448 | |
APBO | 2,448 |
General Journal | Debit | Credit |
---|---|---|
Postretirement benefit expense | 4,100 | |
APBO | 4,100 |
General Journal | Debit | Credit |
---|---|---|
Postretirement benefit expense | 3,848 | |
APBO | 3,848 |
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