ABC Company has a post-employment benefits plan that is considered a defined contribution plan. According to the plan, ABC Company agrees to contribute P800,000 annually to a retirement fund for the benefit of its employees. On December 31, 2021, because of poor results of operations and insufficient working capital, ABC Company was only able to contribute P320,000 to the fund. On December 31, 2022, because of a profitable year, ABC Company decided to contribute P1,800,000 to the retirement fund. On January 12, 2023, an employee retired

FINANCIAL ACCOUNTING
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ISBN:9781259964947
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Chapter1: Financial Statements And Business Decisions
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ABC Company has a post-employment benefits plan that is considered a defined contribution plan. According to the plan, ABC Company agrees to contribute P800,000 annually to a retirement fund for the benefit of its employees. On December 31, 2021, because of poor results of operations and insufficient working capital, ABC Company was only able to contribute P320,000 to the fund. On December 31, 2022, because of a profitable year, ABC Company decided to contribute P1,800,000 to the retirement fund. On January 12, 2023, an employee retired and was eligible to a P60,000 retirement benefits based on the operating efficiency and investment earnings of the fund. How much is the retirement benefits expense recognized in 2022?
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