Problem 26-3 (IAA)Rachel Company revealed the following information for thecurrent year:Fair value of plan assets-January 1Projected benefit obligation-January 1Current service costPast service costActual return on plan assetsContribution to the planBenefits paid to retireesDiscount rate1. What amount should be reported as employee benefitexpense?a. 2,000,0002,200,000c. 2,500,000d. 1,750,0002. What amount should be reported as fair value of planassets on December 31?a. 7,000,000b. 6,500,000c. 6,200,000d. 5,500,0005,000,0007,500,0001,450,000300,000500,0001,500,000800,00010%3. What amount should be reported as projected benefitobligation on December 31?a. 9,250,000b. 9,700,000c. 8,950,000d. 9,200,0004. What amount should be reported as accrued benefit coston December 31?a. 3,000,000b. 2,500,000c. 2,000,000d. 1,500,000

IFRS 19 defines the scope for recognition of employee benefit asset and lability. It calculated as…

Rachel current year: Fair value of plan assets-January 1 Projected benefit obligation-January 1 Current service cost Past service cost Actual return on plan assets Contribution to the plan Benefits paid to retirees Discount rate 5,000,000 7,500,000 1,450,000 300,000 500,000 1,500,000 800,000 10%

Rachel current year: Fair value of plan assets-January 1 Projected benefit obligation-January 1 Current service cost Past service cost Actual return on plan assets Contribution to the plan Benefits paid to retirees Discount rate 5,000,000 7,500,000 1,450,000 300,000 500,000 1,500,000 800,000 10%

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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