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An entity provided the following information during the current year: January 1 December 31 Fair value of plan assets 6,000,000 9,000,000 Projected benefit obligation 4,500,000 5,000,000 Prepaid/accrued benefit cost – surplus 1,500,000 4,000,000 Asset ceiling 1,000,000 2,500,000 Effect of asset ceiling 500,000 1,500,000 During the year, the entity recognized current service cost P2,000,000, actual return on plan assets P400,000, and contribution to the plan P4,550,000 and benefits paid P1,950,000. The discount rate is 10% REQUIRED: 6. Compute the employee benefit expense for the current year

An entity provided the following information during the current year: January 1 December 31 Fair value of plan assets 6,000,000 9,000,000 Projected benefit obligation 4,500,000 5,000,000 Prepaid/accrued benefit cost – surplus 1,500,000 4,000,000 Asset ceiling 1,000,000 2,500,000 Effect of asset ceiling 500,000 1,500,000 During the year, the entity recognized current service cost P2,000,000, actual return on plan assets P400,000, and contribution to the plan P4,550,000 and benefits paid P1,950,000. The discount rate is 10% REQUIRED: 6. Compute the employee benefit expense for the current year

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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B. An entity provided the following information during the current year:
January 1 December 31
Fair value of plan assets 6,000,000 9,000,000
Projected benefit obligation 4,500,000 5,000,000
Prepaid/accrued benefit cost – surplus 1,500,000 4,000,000
Asset ceiling 1,000,000 2,500,000
Effect of asset ceiling 500,000 1,500,000
During the year, the entity recognized current service cost P2,000,000, actual return on plan assets P400,000,
and contribution to the plan P4,550,000 and benefits paid P1,950,000. The discount rate is 10%

REQUIRED:

6. Compute the employee benefit expense for the current year

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