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 employee benefit expense for the current year? Group of answer choices 930,000 900,000 870,000 800,000
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 employee benefit expense for the current year? Group of answer choices 930,000 900,000 870,000 800,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
17
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 employee benefit expense for the current year?
Group of answer choices
930,000
900,000
870,000
800,000
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