Wella Company reported a prepaid benefit cost of P 1,500,000 on January 1, 2016. The entity provided the following information related to defined benefit plan during the current year: Current service cost 3,000,000 Actual return on plan assets Interest cost 1,200,000 800,000 500,000 Settlement price of benefit obligation paid in advance Present value of benefit obligation paid in advance 600,000 Interest income 1,000,000 Actual gain in PBO Past service cost 400,000 500,000 Benefits paid to retirees Contribution to the plan Projected benefit obligation January 1 Fair value of plan assets- January 1 Asset ceiling - January 1 Asset ceiling- December 31 2,500,000 4,000,000 8,000,000 10,000,000 1,500,000 2,000,000 Discount rate 10%
Wella Company reported a prepaid benefit cost of P 1,500,000 on January 1, 2016. The entity provided the following information related to defined benefit plan during the current year: Current service cost 3,000,000 Actual return on plan assets Interest cost 1,200,000 800,000 500,000 Settlement price of benefit obligation paid in advance Present value of benefit obligation paid in advance 600,000 Interest income 1,000,000 Actual gain in PBO Past service cost 400,000 500,000 Benefits paid to retirees Contribution to the plan Projected benefit obligation January 1 Fair value of plan assets- January 1 Asset ceiling - January 1 Asset ceiling- December 31 2,500,000 4,000,000 8,000,000 10,000,000 1,500,000 2,000,000 Discount rate 10%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
What is the 2016 benefir expense and the net remeasurement gain or loss in OCI?
![Wella Company reported a prepaid benefit cost of P 1,500,000 on January 1, 2016. The entity
provided the following information related to defined benefit plan during the current year :
3,000,000
Current service cost
Actual return on plan assets
1,200,000
800,000
Interest cost
Settlement price of benefit obligation paid in advance
Present value of benefit obligation paid in advance
500,000
600,000
Interest income
1,000,000
Actual gain in PBO
Past service cost
400,000
500,000
Benefits paid to retirees
Contribution to the plan
Projected benefit obligation January 1
Fair value of plan assets- January 1
Asset ceiling - January 1
Asset ceiling- December 31
2,500,000
4,000,000
8,000,000
10,000,000
1,500,000
2,000,000
Discount rate
10%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbfcacb4f-a198-4372-92a8-73ce58e8ddb4%2F5fd2dfc5-2cd2-4e87-bc9a-24ef31cd475d%2Fop8bmrf_processed.png&w=3840&q=75)
Transcribed Image Text:Wella Company reported a prepaid benefit cost of P 1,500,000 on January 1, 2016. The entity
provided the following information related to defined benefit plan during the current year :
3,000,000
Current service cost
Actual return on plan assets
1,200,000
800,000
Interest cost
Settlement price of benefit obligation paid in advance
Present value of benefit obligation paid in advance
500,000
600,000
Interest income
1,000,000
Actual gain in PBO
Past service cost
400,000
500,000
Benefits paid to retirees
Contribution to the plan
Projected benefit obligation January 1
Fair value of plan assets- January 1
Asset ceiling - January 1
Asset ceiling- December 31
2,500,000
4,000,000
8,000,000
10,000,000
1,500,000
2,000,000
Discount rate
10%
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