At January 1, 2016, C Company had plan assets of P215,000 and a defined benefit obligation of the same amount. During 2016, service cost was P22,500, the discount rate was 10% actual and expected return on plan assets were P26,000, contributions were P20,000, and benefits paid were P19,500.

SWFT Individual Income Taxes
43rd Edition
ISBN:9780357391365
Author:YOUNG
Publisher:YOUNG
Chapter19: Deferred Compensation
Section: Chapter Questions
Problem 35P
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At January 1, 2016, C Company had plan assets of P215,000 and a defined benefit obligation of the same amount. During 2016, service cost was P22,500, the discount rate was 10% actual and expected return on plan assets were P26,000, contributions were P20,000, and benefits paid were P19,500. Based on this information what would be the Defined Benefit obligation for C Company for 2016?

 
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