You gathered the following information related to Ashley Company’s the defined benefit plan for the current year ended December 31: Fair value of plan assets: P2,100 million at January 1, and P2,300 million at December 31 Present value of obligation to provide benefits: P2,200 million at January 1, and P2,600 million at December 31 Contributions paid to the fund: P80 million Benefits paid to retired employees: P50 million The defined benefit cost for the year is A P250 million B P280 million C P200 million D P120 million

You gathered the following information related to Ashley Company’s the defined benefit plan for the current year ended December 31: Fair value of plan assets: P2,100 million at January 1, and P2,300 million at December 31 Present value of obligation to provide benefits: P2,200 million at January 1, and P2,600 million at December 31 Contributions paid to the fund: P80 million Benefits paid to retired employees: P50 million The defined benefit cost for the year is A P250 million B P280 million C P200 million D P120 million

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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Information about the defined benefit plan of the company are shown below: Fair value on plan assets, January 1, 2021 6,000,000 PV of Defined benefit obligation, January 1, 2021 7,800,000 Actual return on plan asset 180,000 Benefits paid during the year 1,000,000 Contributions during the year 800,000 Current service cost 800,000 Discount rate 5% What is the balance of the defined benefit liability as of December 31, 2021?
An entity provided the following information for the current year: Current service cost 500,000 Past service cost during the year 300,000 Interest on PBO 600,000 Interest income on plan assets 350,000 Loss on plan settlement before normal retirement date 250,000 Present value of benefit obligation settled in advance 950,000 Actual return on plan assets 850,000 Actuarial loss on PBO during the year 200,000 Contribution to the plan 1,500,000 Benefits paid to retirees 1,000,000 Discount or settlement rate 10% What is the employee benefit expense for the current year?
Pension data for Coda Corporation included the following for the current calendar year: Service cost PBO, January 1 Plan assets, January 1 Amortization of prior service cost $126,000 720,000 770,000 5,700 1,700 Amortization of net loss Discount rate, 10% Expected return on plan assets, 12% Actual return on plan assets, 14% Required: Determine pension expense for the year. (Amounts to be deducted should be indicated with a minus sign.) Pension Expense Pension expense
You gathered the following information related to Ashley Company's the defined benefit plan for the current year ended December 31: • Fair value of plan assets: P2,100 million at January 1, and P2,300 million at December 31 • Present value of obligation to provide benefits: P2,200 million at January 1, and P2,600 million at December 31 • Contributions paid to the fund: P80 million • Benefits paid to retired employees: P50 million The defined benefit cost for the year is O P200 million O P120 million P280 million O P250 million
JDS Shipyard's projected benefit obligation, accumulated benefit obligation, and plan assets were $90 million, $80 million, and $76 million, respectively, at the end of the year. Required: a. What, if any, pension liability or pension asset must be reported in the balance sheet? b. What, if any, pension liability or pension asset must be reported in the balance sheet if the plan assets were $100 million instead? Note: For all requirements, enter your answer in millions (i.e., 10,000,000 should be entered as 10). a. b. Net pension asset Net pension liability million million 4
Fajardo Company provided the following pension plan information: Projected benefit obligation – January 1, 2021 3,500,000 Fair value of plan assets – January 1, 2021 2,800,000 Pension benefits paid during the year 250,000 Current service cost for 2021 1,750,000 Past service cost for 2021 425,000 Actual return on plan assets 180,000 Contribution to the plan 1,500,000 Actuarial loss due to change in assumption on PBO 200,000 Discount or settlement rate 10% What is the employee benefit expense for the current year? Group of answer choices 2,245,000 1,750,000 2,525,000 1,905,000
Information on an entity's defined benefit plan are shown below Return on plan asset 240,000 Fair value of plan asset, Jan 1, 2020 2,000,000 Benefits paid to retirees 600,000 Settlement gain on early retirement 100,000 Contributions to the fund 900,000 What is the balance of the Fair value of plan asset on December 31, 2020?
The Carrasco Company has provided you the following information pertaining to its defined benefit pension plan that was adopted on January 1, 20X1: The service cost was $750,000 during 20X1 and $1,125,000 during 20X2. The contribution to the pension plan was $600,000 on December 31, 20X1 and $1,200,000 on December 31, 20X2. The actuarially determined discount rate and the expected return on plan assets are both 10%. The actual return on plan assets was 10.5%. Retirement benefits pertaining to years of service prior to 20X1 were not granted to the employees. What is the pension expense for the year ended December 31, 20X2? Multiple Choice $1,140,000 $1,065,000 $1,200,000 $1,137,000
What is the fair value of the plan assets at December 31?
JDS Shipyard’s projected benefit obligation, accumulated benefit obligation, and plan assets were $40 million, $30 million, and $25 million, respectively, at the end of the year. What, if any, pension liability must be reported in the balance sheet? What would JDS report if the plan assets were $45 million instead?
What amount should Webb Company contribute in order to report an accrued liability for retirement benefit cost of P200,000 in its December 31, 2005 balance sheet? Webb Company implemented a defined benefit plan for its employees on January 1, 2002. During 2002 and 2003, Webb's contributions fully funded the plan. The following data are provided for 2004 and 2005: 2005 estimated 2004 actual Projected benefit obligation, 12/31 Accumulated benefit obligation, 12/31 Plan assets at fair value Projected benefit obligation in excess of plan assets Retirement benefit expense Employer's contribution P7,500,000 5,200,000 6,750,000 P7,000,000 5,000,000 6,000,000 750,000 900,000 ? 1,000,000 800,000 500,000 (a) P1,000,000 (b) P700,000 (c) P600,000 O (d) P500,000
The following data pertains to Integrity Company that adopts a defined benefit plan for its employees: ⚫ Defined benefit obligation, January 1, 2021 - P4,800,000 • Plan assets at fair value, January 1, 2021 - P6,250,000 For the year 2021: ⚫ Current service cost - P560,000 • Contributions made to the fund - P750,000 • Benefits paid to employees - P1,350,000 • Discount rate - 10% • Defined benefit obligation after remeasurement on December 31, 2021 P4,550,000 • Actuarial loss on plan assets - P31,000 How much is the Defined Benefit Liability/Asset at December 31, 2021? Choices: 1,206,000 Liability 1,206,000 Assets 1,694,000 Liability 1,694,000 Asset Show your computation