What is the present value of benefit obligation as of Dec 31, 20x8? The following information is made available involved the defined benefit pension plan of DDD Company for theyear 20x8:Fair value of plant asset, January 1, 20x7Present value of benefit obligation, January 1, 20x7Current service costActual return on plan assetContribution to the planBenefit paid to retireesDecrease in the present value of benefit obligation due to change in actuarialassumptionPresent value of defined benefit obligation settled (carrying value)Settlement price of defined benefit obligation (early retirement)P3,500,0003,750,000700,000420,000600,000750,000100,000250,000200,00010%Discount rate

The present value of benefit obligation (PBO) is a financial measure used in pension accounting to…

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What is the present value of benefit obligation as of Dec 31, 20x8?

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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