On January 1, 20X1, Trouble Company had the following information regarding its defined benefit plan. Fair value of plan assets (FVPA), Jan 1 P480,000 • Present value of the defined benefit obligation, Jan. 1 • Discount rate based on high quality corporate bonds 360,000 5% Information regarding the defined benefit plan as of December 31, 20X1 is as follows: • Contributions made to the fund, July 1, 20X1 • Benefits paid to retirees, September 30, 20X1 P800,000 200,000 Fair value of plan assets (FVPA), Dec 31 1,128,000 Present value of the defined benefit obligation, Dec 31 720,000 How much is the interest income on plan assets?

On January 1, 20X1, Trouble Company had the following information regarding its defined benefit plan. Fair value of plan assets (FVPA), Jan 1 P480,000 • Present value of the defined benefit obligation, Jan. 1 • Discount rate based on high quality corporate bonds 360,000 5% Information regarding the defined benefit plan as of December 31, 20X1 is as follows: • Contributions made to the fund, July 1, 20X1 • Benefits paid to retirees, September 30, 20X1 P800,000 200,000 Fair value of plan assets (FVPA), Dec 31 1,128,000 Present value of the defined benefit obligation, Dec 31 720,000 How much is the interest income on plan assets?

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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Concept explainers

Employee Benefits

In an organization employees are the most important resource and most important asset. They can lead an organization to the sky or can be the reason for unsuccessful of business. Therefore, it is very much important that employees of an organization should be satisfied by the environment of the organization and most importantly with the salary, wages incentives, etc.

Question

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On January 1, 20X1, Trouble Company had the following information regarding its defined benefit plan.
Fair value of plan assets (FVPA), Jan 1
P480,000
Present value of the defined benefit obligation, Jan. 1
360,000
• Discount rate based on high quality corporate bonds
5%
Information regarding the defined benefit plan as of December 31, 20X1 is as follows:
• Contributions made to the fund, July 1, 20X1
P800,000
Benefits paid to retirees, September 30, 20X1
200,000
1,128,000
Fair value of plan assets (FVPA), Dec 31
Present value of the defined benefit obligation, Dec 31
720,000
How much is the interest income on plan assets?

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