At the beginning of current year, Maximus Company had projected benefit obligation of P10,000,000 and a pension Problem 18-20 (IAA) The entity provided the following information related to the fund with a fair value of P9,200,000. pension plan during the current year: Current service cost Actual return on the pension fund Benefits paid to retirees Contribution to the pension fund Discount rate Expected return on pension fund 1,200,000 250,000 1,100,000 1,050,000 10% 1. What is the pension expense for the current year? a. 1,272,000 b. 2,100,000 c. 1,850,000 d. 1,050,000 2. What is the remeasurement gain or loss for the current year? a. 578,000 gain b. 578,000 loss c. 250,000 gain d. 250,000 loss 3. What is the pension asset or liability at year-end? 1,600,000 liability b. 1,600,000 asset 800,000 liability d. a. C. 800,000 asset

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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At the beginning of current year, Maximus Company hada
projected benefit obligation of P10,000,000 and a pension
The entity provided the following information related to the
Problem 18-20 (IAA)
fund with a fair value of P9,200,000.
pension plan during the current year:
Current service cost
Actual return on the pension fund
Benefits paid to retirees
Contribution to the pension fund
Discount rate
Expected return on pension fund
1,200,000
250,000
1,100,000
1,050,000
10%
1. What is the pension expense for the current year?
a. 1,272,000
b. 2,100,000
c. 1,850,000
d. 1,050,000
2. What is the remeasurement gain or loss for the current
year?
a. 578,000 gain
b. 578,000 loss
c. 250,000 gain
d. 250,000 loss
3. What is the pension asset or liability at year-end?
a. 1,600,000 liability
b. 1,600,000 asset
800,000 liability
d.
c.
800,000 asset
Transcribed Image Text:At the beginning of current year, Maximus Company hada projected benefit obligation of P10,000,000 and a pension The entity provided the following information related to the Problem 18-20 (IAA) fund with a fair value of P9,200,000. pension plan during the current year: Current service cost Actual return on the pension fund Benefits paid to retirees Contribution to the pension fund Discount rate Expected return on pension fund 1,200,000 250,000 1,100,000 1,050,000 10% 1. What is the pension expense for the current year? a. 1,272,000 b. 2,100,000 c. 1,850,000 d. 1,050,000 2. What is the remeasurement gain or loss for the current year? a. 578,000 gain b. 578,000 loss c. 250,000 gain d. 250,000 loss 3. What is the pension asset or liability at year-end? a. 1,600,000 liability b. 1,600,000 asset 800,000 liability d. c. 800,000 asset
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