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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.
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