The following data are for Guava Company's retiree health care plan for the current calendar year.
-What is the interest cost to be included in the current year's postretirement benefit expense?

Name: The following data are for Guava Company's retiree health care plan for the current calendar year. -What is the interest cost to be included in the current year's postretirement benefit expense?
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Question

The following data are for Guava Company's retiree health care plan for the current calendar year.  
-What is the interest cost to be included in the current year's postretirement benefit expense?

Quizplus · Accepted Answer

APBO at 1/1 = $60,000 × 4/20 = $12,000
Interest cost = $12,000 × 6% = $720

The Following Data Are for Guava Company's Retiree Health Care