BB Inc. received the following information from its pension plan trustee concerning the operation of the company's defined-benefit pension plan for the year ended December 31, 2020. 1/1/2012/31/20Defined benefit obligationP11,400,000P11,760,000 Pension assets (at fair value) 6,000,0006,900,000Net (gains) and losses0240,000The service cost component of pension expense for 2020 is P840,000 and the past service cost due to an increase in benefits is P180,000 effective January 1, 2020. The discount rate is 10%. What is the amount of pension expense for 2020?

Pension expenses = Service cost + Past service costs + Interest cost - Expected return…

Answered: BB Inc. received the following…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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BB Inc. received the following information from its pension plan trustee concerning the operation of the company's defined-benefit pension plan for the year ended December 31, 2020.

	1/1/20	12/31/20
Defined benefit obligation	P11,400,000	P11,760,000
Pension assets (at fair value)	6,000,000	6,900,000
Net (gains) and losses	0	240,000

The service cost component of pension expense for 2020 is P840,000 and the past service cost due to an increase in benefits is P180,000 effective January 1, 2020. The discount rate is 10%. What is the amount of pension expense for 2020?

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