Reference no: EM132704160

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 $64,000
EPBO, December 31 $69,120
Interest rate 8%
Funding and plan assets None

Problem a.) Calculate the post retirement benefit expense for the current year. (Show calculations, label each amount, and round amounts to the nearest whole dollar.)

Problem b.) Record the entry to record postretirement benefit expense for the current year.