retirement benefit cost that is taken to other comprehensive income
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
Problem 11E
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Question
Integrity Company provides retirement benefits to employees through defined benefit plan. The trustee administering the plan and your analysis of the plan provided the following information for the year ended December 31, 2021:
*Plan assets at fair value, January 1-P1,250,000
*Benefit obligation, January 1-P1,350,000
*Contribution to the fund P2,360,000
*Service cost-P2,000,000
*Discount rate-9%
*Actuarial loss on defined benefit obligation - P50,000
*Actuarial loss on plan assets - P2,000
*Past service cost because of plan amendment - P300,000
*Benefits paid - P120,000
How much is the retirement benefit cost that is taken to other comprehensive income for the year 2021?
A. 52,000
B. 50,000
C. 2,000
D. 0
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