CC Co. amends its defined pension plan on January 1, 2020, resulting in P520,000 of past service cost. The company has 600 active employees, of which 120 vest immediately (20%) and the other 480 (80%) vest in three years. The past service cost applicable to the vested employees is P104,000 and vests immediately. The past service cost related to the unvested employees is P416,000 and vests over five years. How much of the past service costs would CC include in pension expense in 2020?
CC Co. amends its defined pension plan on January 1, 2020, resulting in P520,000 of past service cost. The company has 600 active employees, of which 120 vest immediately (20%) and the other 480 (80%) vest in three years. The past service cost applicable to the vested employees is P104,000 and vests immediately. The past service cost related to the unvested employees is P416,000 and vests over five years. How much of the past service costs would CC include in pension expense in 2020?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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CC Co. amends its defined pension plan on January 1, 2020, resulting in P520,000 of past service cost. The company has 600 active employees, of which 120 vest immediately (20%) and the other 480 (80%) vest in
three years. The past service cost applicable to the vested employees is P104,000 and vests immediately. The past service cost related to the unvested employees is P416,000 and vests over five years. How much of the past service costs would CC include in pension expense in 2020?
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