Strangers & Co. has gathered the following information for its defined benefit plan in 2020: · Projected Benefit Obligation, 1/1/2020: P3,000,000 · Projected Benefit Obligation, 12/31/2020: P3,355,000 · Fair value of plan assets, 1/1/2020: P1,600,000 · Fair value of plan assets, 12/31/2020: P2,260,000 Current service cost for the year is P155,000, contributions to the fund totaled P500,000, and the actual return and interest income on the plan asset was P160,000. No benefits are paid during 2020. During the year, there was a decrease only in the projected benefit obligation due to revision of actuarial assumptions. How much should be recognized as Retirement/Employee Benefit Expense for 2020? a. 195,000 b. 295,000 c. 795,000 d. 500,000
Strangers & Co. has gathered the following information for its defined benefit plan in 2020: · Projected Benefit Obligation, 1/1/2020: P3,000,000 · Projected Benefit Obligation, 12/31/2020: P3,355,000 · Fair value of plan assets, 1/1/2020: P1,600,000 · Fair value of plan assets, 12/31/2020: P2,260,000 Current service cost for the year is P155,000, contributions to the fund totaled P500,000, and the actual return and interest income on the plan asset was P160,000. No benefits are paid during 2020. During the year, there was a decrease only in the projected benefit obligation due to revision of actuarial assumptions. How much should be recognized as Retirement/Employee Benefit Expense for 2020? a. 195,000 b. 295,000 c. 795,000 d. 500,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Strangers & Co. has gathered the following information for its defined benefit plan in 2020:
· Projected Benefit Obligation, 1/1/2020: P3,000,000
· Projected Benefit Obligation, 12/31/2020: P3,355,000
· Fair value of plan assets, 1/1/2020: P1,600,000
· Fair value of plan assets, 12/31/2020: P2,260,000
Current service cost for the year is P155,000, contributions to the fund totaled P500,000, and the actual return and interest income on the plan asset was P160,000. No benefits are paid during 2020. During the year, there was a decrease only in the projected benefit obligation due to revision of actuarial assumptions. How much should be recognized as Retirement/Employee Benefit Expense for 2020?
· Projected Benefit Obligation, 1/1/2020: P3,000,000
· Projected Benefit Obligation, 12/31/2020: P3,355,000
· Fair value of plan assets, 1/1/2020: P1,600,000
· Fair value of plan assets, 12/31/2020: P2,260,000
Current service cost for the year is P155,000, contributions to the fund totaled P500,000, and the actual return and interest income on the plan asset was P160,000. No benefits are paid during 2020. During the year, there was a decrease only in the projected benefit obligation due to revision of actuarial assumptions. How much should be recognized as Retirement/Employee Benefit Expense for 2020?
a. 195,000
b. 295,000
c. 795,000
d. 500,000
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