1. The actuarial valuation report of an entity shows the following information: Present value of defined benefit obligation, Jan. 1 340,000 Current service cost 30,000 Discount rate 10% Benefits paid to retirees Actuarial gain 100,000 60,000 How much is the year-end balance of the present value of defined benefit obligation? a. 210,000 b. 244,000 c. 304,000 d. 364,000

1. The actuarial valuation report of an entity shows the following information: Present value of defined benefit obligation, Jan. 1 340,000 Current service cost 30,000 Discount rate 10% Benefits paid to retirees Actuarial gain 100,000 60,000 How much is the year-end balance of the present value of defined benefit obligation? a. 210,000 b. 244,000 c. 304,000 d. 364,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Employee Benefits

In an organization employees are the most important resource and most important asset. They can lead an organization to the sky or can be the reason for unsuccessful of business. Therefore, it is very much important that employees of an organization should be satisfied by the environment of the organization and most importantly with the salary, wages incentives, etc.

Question

PROBLEM 6: MULTIPLE CHOICE – COMPUTATIONAL
1. The actuarial valuation report of an entity shows the following
information:
Present value of defined benefit obligation, Jan. 1
340,000
Current service cost
30,000
Discount rate
10%
Benefits paid to retirees
Actuarial gain
100,000
60,000
How much is the year-end balance of the present value of defined
benefit obligation?
a. 210,000
b. 244,000
c. 304,000
d. 364,000

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