Watermelon Inc., a company that adheres to IFRS in its accounting and reporting practice, provides a defined benefit pension plan to its employees. The following information is available at for Year 1 (amounts in thousands): PV of defined benefits obligations, beginning of year Fair value of plan assets, beginning of year PV of defined benefits obligations, end of year $1,625,000 1,878,500 2,000,000 2,312,500 Fair value of plan assets, end of year PV of reductions in future contributions, end of year Service cost, current year Actuarial gain, current year Actual return on plan asset, current year Effective yield on high quality corporate bonds, current year 5% What is the amount of defined benefits cost to be reported as part of Watermelon's net income for Year 1: 350,000 118,000 19,000 130,000

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Watermelon Inc., a company that adheres to IFRS in its accounting and reporting practice, provides a defined benefit pension plan to its employees. The
following information is available at for Year 1 (amounts in thousands):
PV of defined benefits obligations, beginning of year
Fair value of plan assets, beginning of year
PV of defined benefits obligations, end of year
Fair value of plan assets, end of year
PV of reductions in future contributions, end of year
Service cost, current year
Actuarial gain, current year
Actual return on plan asset, current year
$1,625,000
1,878,500
2,000,000
2,312,500
350,000
118,000
19,000
130,000
5%
Effective yield on high quality corporate bonds, current year
What is the amount of defined benefits cost to be reported as part of Watermelon's net income for Year 1:
Transcribed Image Text:Watermelon Inc., a company that adheres to IFRS in its accounting and reporting practice, provides a defined benefit pension plan to its employees. The following information is available at for Year 1 (amounts in thousands): PV of defined benefits obligations, beginning of year Fair value of plan assets, beginning of year PV of defined benefits obligations, end of year Fair value of plan assets, end of year PV of reductions in future contributions, end of year Service cost, current year Actuarial gain, current year Actual return on plan asset, current year $1,625,000 1,878,500 2,000,000 2,312,500 350,000 118,000 19,000 130,000 5% Effective yield on high quality corporate bonds, current year What is the amount of defined benefits cost to be reported as part of Watermelon's net income for Year 1:
Multiple Choice
$ 12,675,000
$ 118,000,000
$ 105,325,000
$ 130,675,000
Transcribed Image Text:Multiple Choice $ 12,675,000 $ 118,000,000 $ 105,325,000 $ 130,675,000
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