The following data are for Guava Company's retiree health care plan for the current calendar...
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Accounting
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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