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What amount employee benefit cost should be reported in the profit or loss? A. P675,000 C. P1,025,000 B. P725,000 D. P1,075,000

What amount employee benefit cost should be reported in the profit or loss? A. P675,000 C. P1,025,000 B. P725,000 D. P1,075,000

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 information is made available involving the defined benefit pension plan of APOLINARIO CORP. for the year 2013: Fair value of plan asset, 1/1/13 P3,500,000 Present value of benefit obligation, 1/1/13 3,750,000 Current service cost 700,000 Actual 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 10% Discount rate 10. What amount employee benefit cost should be reported in the profit or loss? A. P675,000 C. P1,025,000 B. P725,000 D. P1,075,000
Transcribed Image Text:The following information is made available involving the defined benefit pension plan of APOLINARIO CORP. for the year 2013: Fair value of plan asset, 1/1/13 P3,500,000 Present value of benefit obligation, 1/1/13 3,750,000 Current service cost 700,000 Actual 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 10% Discount rate 10. What amount employee benefit cost should be reported in the profit or loss? A. P675,000 C. P1,025,000 B. P725,000 D. P1,075,000
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