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16. On January 1, 2019, Crowther Co.'s estimated a present value of defined benefit obligation of P440,000 based on a settlement rate of 12 percent. Pension benefits paid to retirees totaled P60,000. Service costs for 2019 amounted to P148,000. The fair values of the plan assets were P350,000 and P400,000 on December 31, 2018, and December 31, 2019, respectively. The projected benefit obligation at December 31, 2019, was a. 528,000 b. 580,800 c. 630,800 d. 640,800

16. On January 1, 2019, Crowther Co.'s estimated a present value of defined benefit obligation of P440,000 based on a settlement rate of 12 percent. Pension benefits paid to retirees totaled P60,000. Service costs for 2019 amounted to P148,000. The fair values of the plan assets were P350,000 and P400,000 on December 31, 2018, and December 31, 2019, respectively. The projected benefit obligation at December 31, 2019, was a. 528,000 b. 580,800 c. 630,800 d. 640,800

FINANCIAL ACCOUNTING
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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Please put all of the necessary information and computations for better understanding. Thank you.

16. On January 1, 2019, Crowther Co.'s estimated a present value of defined benefit obligation of P440,000 based on a settlement rate of 12 percent. Pension benefits paid to retirees totaled P60,000. Service costs for 2019 amounted to P148,000. The fair values of the plan assets were P350,000 and P400,000 on December 31, 2018, and December 31, 2019, respectively. The projected benefit obligation at December 31, 2019, was а. 528,000 b. 580,800 c. 630,800 d. 640,800 17. The following information relates to the defined benefit pension plan for the McDonald Company for the year ending December31, 2019. Present value of defined benefit obligation, Jan. 1 4,600,000 Present value of defined benefit obligation, Dec. 31 4,729,000 Fair value of plan assets, January 1 5,035,000 Fair value of plan assets, December 31 5,565,000 Expected return on plan assets 450,000 Amortization of deferred gain 32,500 Employer contributions 425,000 Benefits paid to retirees 390,000 Discount rate 10% The return on plan assets for the year is а. 105,000 b. 495,000 с. 503,500 d. 530,000 18. Chester Company has a defined benefit plan. The fair value of plan assets on January 1, 2019, was P1,500,000. No unrecognized net loss or gain existed. On December 31, 2019, the fair value of the plan assets was P1,860,000. Benefits paid to retirees equaled P300,000. Company contributions to the plan totaled P360,000. The settlement rate was 8 percent, and the expected long-term rate of return on plan assets was 10 percent. The actual return on plan assets was а. 150,000 b. 180,000 c. 224,000 d. 300,000
Transcribed Image Text:16. On January 1, 2019, Crowther Co.'s estimated a present value of defined benefit obligation of P440,000 based on a settlement rate of 12 percent. Pension benefits paid to retirees totaled P60,000. Service costs for 2019 amounted to P148,000. The fair values of the plan assets were P350,000 and P400,000 on December 31, 2018, and December 31, 2019, respectively. The projected benefit obligation at December 31, 2019, was а. 528,000 b. 580,800 c. 630,800 d. 640,800 17. The following information relates to the defined benefit pension plan for the McDonald Company for the year ending December31, 2019. Present value of defined benefit obligation, Jan. 1 4,600,000 Present value of defined benefit obligation, Dec. 31 4,729,000 Fair value of plan assets, January 1 5,035,000 Fair value of plan assets, December 31 5,565,000 Expected return on plan assets 450,000 Amortization of deferred gain 32,500 Employer contributions 425,000 Benefits paid to retirees 390,000 Discount rate 10% The return on plan assets for the year is а. 105,000 b. 495,000 с. 503,500 d. 530,000 18. Chester Company has a defined benefit plan. The fair value of plan assets on January 1, 2019, was P1,500,000. No unrecognized net loss or gain existed. On December 31, 2019, the fair value of the plan assets was P1,860,000. Benefits paid to retirees equaled P300,000. Company contributions to the plan totaled P360,000. The settlement rate was 8 percent, and the expected long-term rate of return on plan assets was 10 percent. The actual return on plan assets was а. 150,000 b. 180,000 c. 224,000 d. 300,000
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