Please solve using good accounting form to better understand the problem. Thank you! no remeasurements on PBO happened during the year.The following information is made available in relation to the defined benefit plan of ABCcompany for the year 2021:Present value of benefit obligation , Jan1Present value of benefit obligation Dec 31Fair value of plan assets Jan 1Fair value of plan assets Dec 31Employer contributionBenefits paidP6,900,0007,793,5007,552,5008,347,500637,500585,000Discount rate10%Ceiling -Jan 1300,000How much would be the net pension cost taken to P/L for the year 2021?

A company's defined benefit pension plan has an influence on its financial statements, which is…

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Business

Accounting

How much would be the net pension cost taken to P/L for the year 2021?

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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Question

Please solve using good accounting form to better understand the problem. Thank you!

no remeasurements on PBO happened during the year.
The following information is made available in relation to the defined benefit plan of ABC
company for the year 2021:
Present value of benefit obligation , Jan1
Present value of benefit obligation Dec 31
Fair value of plan assets Jan 1
Fair value of plan assets Dec 31
Employer contribution
Benefits paid
P6,900,000
7,793,500
7,552,500
8,347,500
637,500
585,000
Discount rate
10%
Ceiling -Jan 1
300,000
How much would be the net pension cost taken to P/L for the year 2021?

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