What amount employee benefit cost should be reported in the profit or loss?675 000725 0001025 0001075 000What is the fair value of the plan asset as of December 31, 2018?3 500 0003570 0003 770 0004 100 000 The following information is made available involving the defined benefit pension plan ofPrincess Company for the year 2018:Fair value of plan assets, 1/1/17 P3,500,000Present value of benefit obligation 1/1/17 3,750,000Current service cost 700,000Actuarial return on plan asset 420,000Contribution to the plan 600,000Benefits paid to retirees 750,000.Decrease in the present value of benefit obligation due to change in actuarial assumptions100,000Present value of defined benefit obligation settled 250,000Settlement price of defined benefit obligation 200,000Discount rate 10%

Calculation of Employee benefit cost : Particulars Amount Service Cost 700,000 Add: Interest…

What amount employee benefit cost should be reported in the profit or loss? 675 000 725 000 1025 000 1075 000 What is the fair value of the plan asset as of December 31, 2018? 3 500 000 3570 000 3 770 000 4 100 000

What amount employee benefit cost should be reported in the profit or loss? 675 000 725 000 1025 000 1075 000 What is the fair value of the plan asset as of December 31, 2018? 3 500 000 3570 000 3 770 000 4 100 000

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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Question

What amount employee benefit cost should be reported in the profit or loss?

675 000

725 000

1025 000

1075 000

What is the fair value of the plan asset as of December 31, 2018?

3 500 000

3570 000

3 770 000

4 100 000

The following information is made available involving the defined benefit pension plan of
Princess Company for the year 2018:
Fair value of plan assets, 1/1/17 P3,500,000
Present value of benefit obligation 1/1/17 3,750,000
Current service cost 700,000
Actuarial return on plan asset 420,000
Contribution to the plan 600,000
Benefits paid to retirees 750,000.
Decrease in the present value of benefit obligation due to change in actuarial assumptions
100,000
Present value of defined benefit obligation settled 250,000
Settlement price of defined benefit obligation 200,000
Discount rate 10%

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