YULETIDE Corporation reported the following data on January 1, 2021: Projected benefit obligation Fair value of plan assets 10,000,000 9,000,000 During the current year, the actuary determined the current service cost at P2,000,000 and interest cost at P1,000,000. The interest income on plan assets was P900,000 while the actual return on plan assets was P600,000. There was a decrease in the projected benefit obligation due to changes in actuarial assumptions of P200,000. The average remaining service period of the employees is 10 years.
YULETIDE Corporation reported the following data on January 1, 2021: Projected benefit obligation Fair value of plan assets 10,000,000 9,000,000 During the current year, the actuary determined the current service cost at P2,000,000 and interest cost at P1,000,000. The interest income on plan assets was P900,000 while the actual return on plan assets was P600,000. There was a decrease in the projected benefit obligation due to changes in actuarial assumptions of P200,000. The average remaining service period of the employees is 10 years.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
5. What is the defined benefit cost for the current year?
₱ 2,100,000
₱ 2,000,000
₱ 2,500,000
₱ 2,200,000
![YULETIDE Corporation reported the following data on January 1, 2021:
Projected benefit obligation
Fair value of plan assets
10,000,000
9,000,000
During the current year, the actuary determined the current service cost at P2,000,000 and
interest cost at P1,000,000. The interest income on plan assets was P900,000 while the actual
return on plan assets was P600,000. There was a decrease in the projected benefit obligation
due to changes in actuarial assumptions of P200,000. The average remaining service period of
the employees is 10 years.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F34ac1e77-51bd-4412-8e6e-31b267ad77f4%2F8b891a22-2cd9-415c-95ba-95f208557921%2F35d9247_processed.png&w=3840&q=75)
Transcribed Image Text:YULETIDE Corporation reported the following data on January 1, 2021:
Projected benefit obligation
Fair value of plan assets
10,000,000
9,000,000
During the current year, the actuary determined the current service cost at P2,000,000 and
interest cost at P1,000,000. The interest income on plan assets was P900,000 while the actual
return on plan assets was P600,000. There was a decrease in the projected benefit obligation
due to changes in actuarial assumptions of P200,000. The average remaining service period of
the employees is 10 years.
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