How much would be the net pension cost taken to P/L for the year 2021?

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter19: Accounting For Post Retirement Benefits
Section: Chapter Questions
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no remeasurements on PBO happened during the year.
The following information is made available in relation to the defined benefit plan of ABC
company for the year 2021:
Present value of benefit obligation , Jan1
Present value of benefit obligation Dec 31
Fair value of plan assets Jan 1
Fair value of plan assets Dec 31
Employer contribution
Benefits paid
P6,900,000
7,793,500
7,552,500
8,347,500
637,500
585,000
Discount rate
10%
Ceiling -Jan 1
300,000
How much would be the net pension cost taken to P/L for the year 2021?
Transcribed Image Text:no remeasurements on PBO happened during the year. The following information is made available in relation to the defined benefit plan of ABC company for the year 2021: Present value of benefit obligation , Jan1 Present value of benefit obligation Dec 31 Fair value of plan assets Jan 1 Fair value of plan assets Dec 31 Employer contribution Benefits paid P6,900,000 7,793,500 7,552,500 8,347,500 637,500 585,000 Discount rate 10% Ceiling -Jan 1 300,000 How much would be the net pension cost taken to P/L for the year 2021?
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