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The following data are available pertaining to Household Appliance Company's retiree health care plan for 2011:
Required:
1. What is the accumulated postretirement benefit obligation at the beginning of 2011?
2. What is interest cost to be included in 2011 postretirement benefit expense?
3. What is service cost to be included in 2011 postretirement benefit expense?
4. Prepare the journal entry to record the postretirement benefit expense for 2011.
(a) Who are the stakeholders in this situation? (b) What are the ethical issues? (c) What would you do as the chief financial officer?
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