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: $61,000

EPBO, December 31: $67,100

Interest rate: 10%

Funding and plan assets: None

What is the interest cost to be included in the current year's post-retirement benefit expense?

A.) $1,220

B.) $1,120

C.) $1,342

D.) $6,100

Answer rating: 100% (QA)

Ans EPBO January 1 61000 EPBO December 31 67100 Inte... View the full answer