The following data are available pertaining to HouseholdAppliance Company's retiree health care plan for 2021:
| |
| Number of employees covered | | 2 | |
| Years employed as of January 1, 2021 | | 2 | [each] |
| Attribution period | | 25 | years |
| Expected postretirement benefit obligation, Jan. 1 | $ | 63,000 | |
| Expected postretirement benefit obligation, Dec. 31 | $ | 66,150 | |
| Interest rate | | 5 | % |
| Funding | | none | |
|
Required:
1. What is the accumulated postretirement benefitobligation at the beginning of 2021?
2. What is interest cost to be included in 2021postretirement benefit expense?
3. What is service cost to be included in 2021postretirement benefit expense?
4. Prepare the journal entry to record thepostretirement benefit expense for 2021.
