The following information relates to the pension plan of Brown company. Defined benefit obligation, January 1, 2020 - P 4,000,000 Fair value of plan assets, January 1, 2020 - 3,600,000 The following information is for the year 2021: Contributions to the plan - P1,000,000 Benefits paid - 500,000 Discount rate - 10% Service cost for year 2021 - 1,200,000 Actual return on plan assets - 400,000 Actuarial loss on defined benefit obligation - 150,000 How much is the retirement benefit expense for the year 2021?
The following information relates to the pension plan of Brown company. Defined benefit obligation, January 1, 2020 - P 4,000,000 Fair value of plan assets, January 1, 2020 - 3,600,000 The following information is for the year 2021: Contributions to the plan - P1,000,000 Benefits paid - 500,000 Discount rate - 10% Service cost for year 2021 - 1,200,000 Actual return on plan assets - 400,000 Actuarial loss on defined benefit obligation - 150,000 How much is the retirement benefit expense for the year 2021?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following information relates to the pension plan of Brown company.
Defined benefit obligation, January 1, 2020 - P 4,000,000
Fair value of plan assets, January 1, 2020 - 3,600,000
The following information is for the year 2021:
Contributions to the plan - P1,000,000
Benefits paid - 500,000
Discount rate - 10%
Service cost for year 2021 - 1,200,000
Actual return on plan assets - 400,000
Actuarial loss on defined benefit obligation - 150,000
How much is the retirement benefit expense for the year 2021?
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