On January 1, 2019, the memorandum records of ABC Company showed the following balances related to its defined benefit plan: Fair value of plan assets Defined benefit obligation P13,300,000 (12,600,000) P 700,000 Prepaid/Accrued Benefit Cost The transactions affecting the defined benefit plan for the current year are as follows: Current service cost P2,520,000 Interest cost 1,120000 Actual return on plan assets 700,000 Contribution to the plan 2,800,000 Benefits paid to retires 1,400,000 What is the amount of the Prepaid/Accrued Benefit Cost that should be shown on the December 31, 2019 statement of financial position?
On January 1, 2019, the memorandum records of ABC Company showed the following balances related to its defined benefit plan: Fair value of plan assets Defined benefit obligation P13,300,000 (12,600,000) P 700,000 Prepaid/Accrued Benefit Cost The transactions affecting the defined benefit plan for the current year are as follows: Current service cost P2,520,000 Interest cost 1,120000 Actual return on plan assets 700,000 Contribution to the plan 2,800,000 Benefits paid to retires 1,400,000 What is the amount of the Prepaid/Accrued Benefit Cost that should be shown on the December 31, 2019 statement of financial position?
Chapter19: Deferred Compensation
Section: Chapter Questions
Problem 35P: In 2019, Magenta Corporation paid compensation of 45,300 to the participants in a profit sharing...
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What is the amount of prepaid/accrued benefit cost that should be shown on the December 31, 2019
560,000
700,000
840,000
2,520,000
answer not given
![On January 1, 2019, the memorandum records of ABC Company
showed the following balances related to its defined benefit plan:
Fair value of plan assets
Defined benefit obligation
P13,300,000
(12,600,000)
P 700,000
Prepaid/Accrued Benefit Cost
The transactions affecting the defined benefit plan for the current
year are as follows:
Current service cost
P2,520,000
Interest cost
1,120000
Actual return on plan assets
700,000
Contribution to the plan
2,800,000
1,400,000
Benefits paid to retires
What is the amount of the Prepaid/Accrued Benefit Cost that
should be shown on the December 31, 2019 statement of financial
position?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1056caba-29cc-4ab1-afb1-57fd6a9a1de4%2F417e851d-ae9f-479e-b519-818f43071565%2F2x42g4_processed.png&w=3840&q=75)
Transcribed Image Text:On January 1, 2019, the memorandum records of ABC Company
showed the following balances related to its defined benefit plan:
Fair value of plan assets
Defined benefit obligation
P13,300,000
(12,600,000)
P 700,000
Prepaid/Accrued Benefit Cost
The transactions affecting the defined benefit plan for the current
year are as follows:
Current service cost
P2,520,000
Interest cost
1,120000
Actual return on plan assets
700,000
Contribution to the plan
2,800,000
1,400,000
Benefits paid to retires
What is the amount of the Prepaid/Accrued Benefit Cost that
should be shown on the December 31, 2019 statement of financial
position?
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