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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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?
 
a. 195,000
b. 295,000
c. 795,000
d. 500,000
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