Help Save & Ex Saved Pesion quiz The following data are for Guava Company\'s ret

Question

Help Save & Ex Saved Pesion quiz The following data are for Guava Company's retiree health care plan for the current calendar year. 8 Number of employees covered Years employed as of January 1 Attribution period EPBO, January 1 EPBO, December 31 Interest rate Funding and plan assets 4 (each) 20years $64,000 $69,760 01:18:57 9% None t is the correct entry to record postretirement benefit expense for the current year? (Do not round your intermediate calculations and round your answer to the nearest whole dollar.) Multiple Choice 4,640 Postretirement benefit expense 4.640 Cash 4,640 Postretirement benefit expense 4,640 APBO K Prex8 of 12 Next> Mc Graw Hill

Explanation / Answer

Answer: B)   Postretirement benefit expense                 4640

APBO                                                           4640      

Working:    service cost   ($69,760*1/20)       =   $3488    

                   Interest cost ($64,000*4/20*9%) =     $1152

             Post retirement benefit expenses         = $4640

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