Please show the solution. Problem 6:Information on KINETIC ACTIVE Co.s' plan assets is shown below:Fair value of plan assets, Jan. 12,000,000Interest income (actual)400,000Unrealized gains from fair value changes (actual)Costs of managing plan assetsTax on gross returns200,00040,00010%Discount rate12%Requirements:a. How much is the return on plan assets?b. How much is the ending balance of the fair value of plan assets?. How much is recognized in profit or loss and how much is recognized other comprehensive income?

Recognizing profit or loss in accounting is the formalized recording of a company's financial…

Problem 6: Information on KINETIC ACTIVE Co.s' plan assets is shown below: Fair value of plan assets, Jan. 1 Interest income (actual) Unrealized gains from fair value changes (actual) Costs of managing plan assets Tax on gross returns Discount rate 2,000,000 400,000 200,000 40,000 10% 12% Requirements: a. How much is the return on plan assets? b. How much is the ending balance of the fair value of plan assets? C How much is recognized in profit or loss and how much is recognized other comprehensive income?

Problem 6: Information on KINETIC ACTIVE Co.s' plan assets is shown below: Fair value of plan assets, Jan. 1 Interest income (actual) Unrealized gains from fair value changes (actual) Costs of managing plan assets Tax on gross returns Discount rate 2,000,000 400,000 200,000 40,000 10% 12% Requirements: a. How much is the return on plan assets? b. How much is the ending balance of the fair value of plan assets? C How much is recognized in profit or loss and how much is recognized other comprehensive income?

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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12 Richelle Company provided the following information during the current year: January 1 December 31 Fair value of plan assets 6,000,000 8,500,000 Projected benefit obligation 5,000,000 6,500,000 Prepaid/accrued benefit cost - surplus 1,000,000 2,000,000 Asset ceiling 700,000 1,200,000 Effect of asset ceiling 300,000 800,000 During the year, entity recognized current service cost of P1,000,000, actual return on plan assets of P400,000, and contribution to plan of P2,100,000. The discount rate is 10%. What is the net remeasurement loss for the current year? Group of answer choices 670,000 700,000 270,000 730,000 PreviousNext
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