The memorandum records of ABC Company at January 1,2020 show the following: Defined Benefit Obligation P 2,600,000 Fair value of Plan Assets 3,000,000 The following information for 2020 is also provided: Service cost P 800,000 Discount rate 9% Actual return on plan assets Benefits paid Contributions to the plan 300,000 350,000 780,000 Actuarial loss on remeasurement of Defined Benefit Obligation 100,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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  1. How much is the balance of the defined benefit obligation at December 31,2020?
  2. How much is the surplus or deficit related to retirement benefits that will be shown on December 31,2020 statement of financial position
  3. How much is the defined benefit cost taken to other comprehensive income for the year 2020? 
The memorandum records of ABC Company at January 1,2020 show the following:
Defined Benefit Obligation
P 2,600,000
Fair value of Plan Assets
3,000,000
The following information for 2020 is also provided:
Service cost
P 800,000
Discount rate
9%
Actual return on plan assets
Benefits paid
Contributions to the plan
300,000
350,000
780,000
Actuarial loss on remeasurement of
Defined Benefit Obligation
100,000
Transcribed Image Text:The memorandum records of ABC Company at January 1,2020 show the following: Defined Benefit Obligation P 2,600,000 Fair value of Plan Assets 3,000,000 The following information for 2020 is also provided: Service cost P 800,000 Discount rate 9% Actual return on plan assets Benefits paid Contributions to the plan 300,000 350,000 780,000 Actuarial loss on remeasurement of Defined Benefit Obligation 100,000
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