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The following relates to the define benefit obligation plan for Tokwa’t Baboy Inc. in 2016: Accrued benefit obligation, January 1 4,600,000 Accrued benefit obligation, December 31 4,929,000 FV of plan assets, January 1 5,035,000

The following relates to the define benefit obligation plan for Tokwa’t Baboy Inc. in 2016: Accrued benefit obligation, January 1 4,600,000 Accrued benefit obligation, December 31 4,929,000 FV of plan assets, January 1 5,035,000

FINANCIAL ACCOUNTING
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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The following relates to the define benefit obligation plan for Tokwa’t Baboy Inc. in 2016:
Accrued benefit obligation, January 1 4,600,000
Accrued benefit obligation, December 31 4,929,000
FV of plan assets, January 1 5,035,000
FV of plan assets, December 31 5,565,000
Actuarial gain due to remeasurement of benefit obligation 32,500
Employer contributions 425,000
Benefits paid to retirees 390,000
Discount rate 10% 

 

  1. The service cost for current year would be
    A. P219,500 B. P226,500 C. P262,500 D. P291,500
  2. . The actual return on plan assets for the year is
    A. P105,000 B. P495,000 C. P503,500 D. P512,000 
  3. What is the retirement benefit expense reported in profit or loss for the year 2016?
    A. P224,000 B. P242,000 C. P248,000 D. P284,000
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