William and Raj Company provided the following information for the year:Projected benefit obligation - January 1 P 700,000Fair value of plan assets - January 1 560,000Pension benefits paid during the year 50,000Current service cost for the year 350,000Past service cost for the year (vesting period 5 years) 85,000Actual return on plan assets 36,000Contributions to the plan 300,000Actuarial loss due to change in assumptions on projected benefit obligation 40,000Discount or settlement rate 10%Expected return on plan assets 12%1. What is the employee benefit expense for the current year?2. How much is the actuarial gain/loss on return on plan assets?3. What is the prepaid/accrued balance of the pension at yearend?4. How much is the defined benefit cost?5. If the pension benefits paid during the year is wo
William and Raj Company provided the following information for the year:
Projected benefit obligation - January 1 P 700,000
Fair value of plan assets - January 1 560,000
Pension benefits paid during the year 50,000
Current service cost for the year 350,000
Past service cost for the year (vesting period 5 years) 85,000
Actual return on plan assets 36,000
Contributions to the plan 300,000
Actuarial loss due to change in assumptions on projected benefit obligation 40,000
Discount or settlement
Expected return
1. What is the employee benefit expense for the current year?
2. How much is the actuarial gain/loss on return on plan assets?
3. What is the prepaid/accrued balance of the pension at yearend?
4. How much is the defined benefit cost?
5. If the pension benefits paid during the year is worth P50,000 but the company was able to pay only P45,000, what would be the employee benefit
expense for the current year assuming the above given is the same?
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