The following information is made available involving the defined benefit pension planof APOLINARIO CORP. for the year 2013:Fair value of plan asset, 1/1/13P3,500,000Present value of benefit obligation, 1/1/133,750,000Current service cost700,000Actual return on plan asset420,000Contribution to the plan600,000Benefits paid to retirees750,000Decrease in the present value ofbenefit obligation due to change in actuarial assumptions100,000Present value of defined benefit obligation settled250,000Settlement price of defined benefit obligation200,00010%Discount rate10. What amount employee benefit cost should be reported in the profit or loss?A.P675,000 C.P1,025,000B.P725,000 D.P1,075,000

Calcuation of amount to be reported in profit and loss

Answered: What amount employee benefit cost…

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

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter19: Accounting For Post Retirement Benefits

Section: Chapter Questions

Problem 6RE

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