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Question - 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 59,000
Interest rate 4%
Funding and plan assets none
a) Determine the pension expense for the year. (Amounts to be deducted should be indicated with a minus sign.) Show all calculations. Use the book and power points/videos as examples of how to show calculations and label all amounts.
b) Prepare the journal entry to record the pension expense.
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