Reference no: EM132704172
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
Question 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.
Question b.) Prepare the journal entry to record the pension expense.