On January 1, 2019, HULA Co. provided these data concerning its defined benefit plan: Fair value of plan assets Defined benefit obligation Prepaid/accrued benefit cost- credit P9,500,000 12,000,000 P2,500,000 The transactions for 2019 are as follows:

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
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How much is the prepaid/accrued benefit cost on December 31, 2019?

On January 1, 2019, HULA Co. provided these data concerning its defined benefit plan:
Fair value of plan assets
Defined benefit obligation
Prepaid/accrued benefit cost- credit
P9,500,000
12,000,000
P2,500,000
The transactions for 2019 are as follows:
Current service cost
Actual return on plan assets
Contribution to the plan
Benefits paid to retirees
Increase in defined benefit plan due to change in
actuarial assumptions
Present value of defined benefit obligation settled
Settlement price of defined benefit obligation
Discount rate
P1,800,000
1,100,000
2,700,000
2,000,000
150,000
600,000
800,000
10%
How much is the Prepaid/accrued benefit cost on December 31, 2019?
Transcribed Image Text:On January 1, 2019, HULA Co. provided these data concerning its defined benefit plan: Fair value of plan assets Defined benefit obligation Prepaid/accrued benefit cost- credit P9,500,000 12,000,000 P2,500,000 The transactions for 2019 are as follows: Current service cost Actual return on plan assets Contribution to the plan Benefits paid to retirees Increase in defined benefit plan due to change in actuarial assumptions Present value of defined benefit obligation settled Settlement price of defined benefit obligation Discount rate P1,800,000 1,100,000 2,700,000 2,000,000 150,000 600,000 800,000 10% How much is the Prepaid/accrued benefit cost on December 31, 2019?
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