INTERMEDIATE ACCOUNTING 2 EMPLOYEE BENEFITS Problem 10-1 On January 1, 2020, TRISHA COMPANY reported the fair value of plan assets at Excráses P6,000,000 and projected benefit obligation at P8,000,000. During the year, the entity made a lump-sum payment to certain plan participants in exchange for their rights to receive specified postemployment benefits. The lump sum payment was P800,000 and the present value of the defined benefit obligation settled was P1,000,000. In addition, the following data are gathered during the current year: Current service cost 900,000 Actual return on plan assets 800,000 Contribution to the plan 700,000 Discount rate 12% Required: 1. Determine the following: a. Employee benefit expense b. Fair value of assets as at December 31, 2020 c. Projected benefit obligation as at December 31, 2020 d. Prepaid or accrued benefit as at December 31, 2020 2. Entry to record retirement related accounts for 2020.

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