On January 1, 2022, Seismic Slam Company had the following balances in its memorandum records: Fair value of plan assets P3,000,000; Definedbenefit obligation P3,400,000. Other related to the retirement benefit plan for 2022 are as follows:Current service cost200,000Past service cost150,000Contribution to the plan204,000Benefits paid200,000Discount rate8%Actual return on plan asset285,000Decrease in defined benefit obligation as a result of remeasurement25,000What amount of defined benefit cost should be reported in profit or loss?O 70,000O 452,000O 382,000O 312,000

Interest cost = Projected benefit obligation x Discount or settlement rate = 3,400,000 x 8% =…

Answered: On January 1, 2022, Seismic Slam…

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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