The following data are available pertaining to Firewall Corporation's retiree health plan for 2013:
Number of employees covered
|
4
|
Years employed as of January 1, 2013 5 (each)
|
5 (each)
|
Attribution period
|
20 years
|
EPBO, January 1
|
$100,000
|
EPBO, December 31
|
$106,000
|
Interest rate
|
6%
|
Funding
|
none
|
Required:
1) What is the APBO at the beginning of 2013?
2) What is the interest cost for 2013?
3) What is service cost for 2013?
4) Prepare the journal entry to record the postretirement benefit expense for 2013.