At January 1, 2019, XYZ Company had plan assets of €250,000 and a defined benefit obligation of the same amount. During 2019, service cost was €27,500, the discount rate was 10%, actual and expected return on plan assets were €25,000, contributions were €20,000, and benefits paid were €17,500. Based on this information what would be the defined benefit obligation for XYZ Company for 2019? Select one: a. €27,500 b. €285,000 C. €277,500 d. €302,500

At January 1, 2019, XYZ Company had plan assets of €250,000 and a defined benefit obligation of the same amount. During 2019, service cost was €27,500, the discount rate was 10%, actual and expected return on plan assets were €25,000, contributions were €20,000, and benefits paid were €17,500. Based on this information what would be the defined benefit obligation for XYZ Company for 2019? Select one: a. €27,500 b. €285,000 C. €277,500 d. €302,500

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

At January 1, 2019, XYZ Company had plan assets of €250,000 and a defined benefit obligation of the same
amount. During 2019, service cost was €27,500, the discount rate was 10%, actual and expected return on plan
assets were €25,000, contributions were €20,000, and benefits paid were €17,500. Based on this information
what would be the defined benefit obligation for XYZ Company for 2019?
Select one:
a. €27,500
b. €285,000
c. €277,500
d. €302,500

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