10. Porgy Co.'s retirement plan requires a P250,000 annualcontribution to a fund held by a third party trustee. The fundis legally separate from Porgy Co. and is available solely forthe payment of the retirement benefits of Porgy's employees.At the beginning 20x1, the fund balance is P2,800,000. In itsDecember 31, 20x0 and December 31, 20x1 statements offinancial position, Porgy reported accrued payable forretirement benefits of P30,000 and P80,000, respectively.Payments to retiring employees during 20x1 totaled P750,000.How much is the retirement benefits expense in 20x1?a. 250,000b. 700,000c. 750,000d. 800,000

A retirement benefit plan involves annual contributions form the employer to the retirement fund.…

Answered: 6 tmpioyees during 20x1 totaled…

6 tmpioyees during 20x1 totaled P750,000.- How much is the retirement benefits expense in 20x1? a. 250,000 b. 700,000 c. 750,000 d. 800,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: A perpetuity has a PV of $25,000. If the interest rate is 11%, how much will the perpetuity pay…

A: A perpetuity is a cash flow that goes on forever. In other words the time period for a perpetuity is…

Q: Question 8 What is the future value of a lump sum of $4,351 invested for 7 years at 5.4 percent…

A: Initial investment (I) = $4,351 Interest rate (r) = 0.054 Period (n) = 7 Years Future value = ?…

Q: What is the present value of a perpetuity with the annual payment of $4,000 at the annual interest…

A: The present value is used to estimate the current value of a future payment or cash flow. It entails…

Q: A perpetuity paying 1 at the beginning of each 6-month period has a present value of 95. A second…

A: Given, The PV of perpetuity 6 month period is 95 Another perpetuity pays X.

Q: What is the future value of $11,000 invested for one year at an interest rate of 6% p.a.? a. $17000…

A: given interest rate = 6% PV = 11000

Q: Question 15: The 2021 Social Security wage base is Answer: А. S100,000 В. O $113,700 S125,000 D. O…

A: Social security wage base is highest earned gross income in which social security tax will be…

Q: In the following ordinary annuity, the interest is compounded with each payment, and the payment is…

A: Time taken can be calculated using NPER function in excel. =NPER(rate,pmt,pv,[fv],[type]) Rate The…

Q: A bond has eight years to maturity, a $2,000 face value, and a 5.8% coupon rate with annual coupons.…

A: Bonds are debt instruments issued by companies. The issuing company pays periodic interest or…

Q: What amount of money deposited 70 years ago at 3% interest would provide a perpetual (i.e. infinite…

A: Perpetual Amount Formula = Annual Amount/ Interest rate Annual Amount = $ 23,000 Interest Rate = 3%…

Q: How much more is a perpetuity of $1,000 worth than an annuity of the same amount for 25 years?…

A: A perpetuity is a type of annuity. It is that annuity that goes on forever.

Q: What is the present value of $44,100 to be received in 10 years; i = 7%. Present value %24

A: Present value = Future Value / (1+i)n Where i = Interest or discount rate n = Number of years

Q: 5. What amount should be invested now at 6% per year, compounded annually, to generate a retirement…

A: Present value will be the maximum amount that can be saved or invested now to generate a steady…

Q: The Excel worksheet below contains data for an annuity investment. In the space provided, enter the…

A: Future value of deposit includes the amount being deposited and amount of interest being accumulated…

Q: What is most that we should pay today for an annuity contract that promises to pay $15,000 per year…

A: We need to use ordinary annuity(payment due at end) formula below to calculate present sum needed…

Q: Problem 10 Determine the present value of each perpetuity shown in the following table. Annual…

A: Perpetuity Annual amount Discount rate A 30000 8% B 100000 12% C 20000 6% D 60000 5%

Q: Construct on amortization schedule for a $275,000,68% amual rate loan with 30 equal payments.

A: The amortization schedule refers to the breakdown of the payments made towards the loan into…

Q: A perpetuity pays $85 per year and costs $950. What is the rate of return? 8.95% 9.39% 9.86%…

A: The objective of the question is to calculate the rate of return on a perpetuity. A perpetuity is a…

Q: 17. What is the present value of a $5,500 perpetuity starting in a year's time, then growing by 4%…

A: Option (A) $55,000Explanation:Given information, Cash flow at the end of year 1 (CF1) = $5,500Growth…

Q: PNG se th ar ye the What is the present value of an annuity of $4,000 received at the beginning of…

A: Payment = p = $4000Time = t = 8Discount Rate = r = 9%Payment Type = at the beginning

Concept explainers

Employer Pension Plan

An employer pension plan is a retirement benefit provided by an employer to employees before or after they retire. Over the course of the employees' working lives, the employer should invest a lump sum or make monthly contributions to investment schemes in employees' names. It is the employer's legal responsibility to provide employees with retirement plans that support them with guaranteed financial security in retirement.

Question

100%

10. Porgy Co.'s retirement plan requires a P250,000 annual
contribution to a fund held by a third party trustee. The fund
is legally separate from Porgy Co. and is available solely for
the payment of the retirement benefits of Porgy's employees.
At the beginning 20x1, the fund balance is P2,800,000. In its
December 31, 20x0 and December 31, 20x1 statements of
financial position, Porgy reported accrued payable for
retirement benefits of P30,000 and P80,000, respectively.
Payments to retiring employees during 20x1 totaled P750,000.
How much is the retirement benefits expense in 20x1?
a. 250,000
b. 700,000
c. 750,000
d. 800,000

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Q6. What's the present value of a perpetutity that pays $1,524 per year if the aprropriate interest rate is 5.3 % ? Round answer to 2 decimal places?
16. How much would you pay for the right to receive $28,750 at the end of 10 years if you can earn 5.00% interest ? a. $1,607 b. $15,889 c. $28,750 d. $17,650
ff1
7How much more is a perpetuity paying $5000 at the end of year worth than an annuity paying the same annual amounts at the end of each year for 30 years? Assume an interest rate of 5%. a. $10,635.08 b. $21,976.29 c. $50,000.00 d. $23,137.74 8Miller's Hardware plans on saving $40,000, $50,000, and $58,000 at the end of each year for the next three years, respectively. How much will the firm have saved at the end of the three years if it can earn 6% by reinvesting its saving? a. $155,944.00 b. $169,004.13 c. $148,000.00 d. $148,078.15 9On the day you retire you have $500,000 saved. You expect to live another 30 years during which time you expect to earn 8% on your savings while inflation averages 3.5% annually. Assume you want to spend the same amount each year in real terms and die on the day you spend your last dime. What real amount will you be able to spend each year?  a. $61,931.78 b. $79,211.09 c. $79,644.58 d. $30,695.77
What is the principal amount that will earn interest of RO 18.20 at 3.25% in 2 years? a. RO 200 b. RO 280 c. RO 240 d. RO 320
find the final amount in this retirement account, in which the rate of return on the account and the regular contribution change over time 1500$ per quarter invested at 7.9% compound quarterly , for 20 years, then 1000$ per quarter invested at 6.8% compund quarterly for 10 years. answer is about 620,187$
Ceres Space Corporation's allotted a budgeted monthly sales are P3,000. In this case, forty percent of its customers pay in the first month and take the 2 percent discount. The remaining sixty percent pay in the month following the sale and don't receive a discount. Ceres' bad debts are very small and are excluded from this analysis. Purchases for next month's sales are constant each month at P1,500. Other payments for wages, rent, and taxes are constant at P700 per month. Construct a single month's cash budget with the information given. What is the average cash gain or (loss) during a typical month for this corporation? * P728 P800 O P776 P2,600 O P740
7b. Compute the present value of a $100 annual annuity for the following combination of rates and time periods: (Round your answers to the nearest cent. Round PVA factors to 4 decimal places.) d. r = 4%, t = 20 years PV of annuity $
Q6. What's the present value of a perpetutity that pays $1,524 per year if the aprropriate interest rate is 5.3 % ? Round answer to 2 decimal places?
klp.3