The following information relates to the defined benefit pension plan for the Nicola Company for the year ending December 31, 2020. Defined benefit obligation, January 1 P4,600,000 Defined benefit obligation, Dec. 31 4,729,000 Fair value of plan assets, January 1 5,035,000 Fair value of plan assets, Dec. 31 5,565,000 Expected return on plan assets 450,000 Employer contributions 425,000 Benefits paid to retirees 390,000 Settlement rate 10% Service cost for the year would be Group of answer choices P94,000 P59,000 P390,000 P129,000

The following information relates to the defined benefit pension plan for the Nicola Company for the year ending December 31, 2020. Defined benefit obligation, January 1 P4,600,000 Defined benefit obligation, Dec. 31 4,729,000 Fair value of plan assets, January 1 5,035,000 Fair value of plan assets, Dec. 31 5,565,000 Expected return on plan assets 450,000 Employer contributions 425,000 Benefits paid to retirees 390,000 Settlement rate 10% Service cost for the year would be Group of answer choices P94,000 P59,000 P390,000 P129,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Question

The following information relates to the defined benefit pension plan for the Nicola Company for the year ending December 31, 2020.

Defined benefit obligation, January 1

P4,600,000

Defined benefit obligation, Dec. 31

4,729,000

Fair value of plan assets, January 1

5,035,000

Fair value of plan assets, Dec. 31

5,565,000

Expected return on plan assets

450,000

Employer contributions

425,000

Benefits paid to retirees

390,000

Settlement rate

10%

Service cost for the year would be

Group of answer choices

P94,000

P59,000

P390,000

P129,000

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