YULETIDE Corporation reported the following data on January 1, 2021: Projected benefit obligation Fair value of plan assets 10,000,000 9,000,000 During the current year, the actuary determined the current service cost at P2,000,000 and interest cost at P1,000,000. The interest income on plan assets was P900,000 while the actual return on plan assets was P600,000. There was a decrease in the projected benefit obligation due to changes in actuarial assumptions of P200,000. The average remaining service period of the employees is 10 years.

YULETIDE Corporation reported the following data on January 1, 2021: Projected benefit obligation Fair value of plan assets 10,000,000 9,000,000 During the current year, the actuary determined the current service cost at P2,000,000 and interest cost at P1,000,000. The interest income on plan assets was P900,000 while the actual return on plan assets was P600,000. There was a decrease in the projected benefit obligation due to changes in actuarial assumptions of P200,000. The average remaining service period of the employees is 10 years.

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 6RE

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In 2019, Magenta Corporation paid compensation of 45,300 to the participants in a profit sharing plan. During 2019, Magenta Corporation contributed 13,200 to the plan. a. Calculate Magentas deductible amount for 2019. b. Calculate the amount of any contribution carryover from 2019.
On January 1, 2021 COMET Company provided the following data in connection with the defined benefit plan: Fair value of plan assets -P6,700,000; Projected benefit obligation -7,600,000. The accountant revealed the following information for the current year: Current service cost -1,750,000; Past service cost -$300,000; Discount rate - 10%; Expected return on plan assets-12%; Actual return on plan assets -P500,000; Contributions to the plan -P2,000,000; Benefit paid to retirees - P1,250,000. What is the employee benefit expense on December 31, 2021?
At January 1, 2020, Pharoah Corporation had plan assets of $257,000 and a defined benefit obligation of the same amount based on projected costs. During 2020, the current service cost was $28,300, the discount rate on the DBO and plan assets was 10%, actual return on plan assets was $31,400, contributions by Pharoah were $20,800, benefits paid were $17,500, and the cost of past service benefits granted effective December 31, 2020, was $29,000. Prepare a pension work sheet for Pharoah Corporation for 2020 assuming that Pharoah follows IFRS.
On January 1, 2021 COMET Company provided the following data in connection with the defined benefit plan: Fair value of plan assets –₱6,700,000; Projected benefit obligation ₱7,600,000. The accountant revealed the following information for the current year: Current service cost –₱1,750,000; Past service cost –₱300,000; Discount rate – 10%; Expected return on plan assets – 12%; Actual return on plan assets –₱500,000; Contributions to the plan –₱2,000,000; Benefit paid to retirees –₱1,250,000. What is the employee benefit expense on December 31, 2021?
On January 1, 2021 STAR Company provided the following data in connection with the defined benefit plan: Fair value of plan assets –₱6,700,000; Projected benefit obligation –₱7,600,000. The accountant revealed the following information for the current year: Current service cost –₱1,750,000; Past service cost –₱300,000; Discount rate – 10%; Expected return on plan assets – 12%; Actual return on plan assets –₱500,000; Contributions to the plan –₱2,000,000; Benefit paid to retirees –₱1,250,000. What is the employee benefit expense on December 31, 2021?
At January 1, 2020, Blossom Corporation had plan assets of $258,000 and a defined benefit obligation of the same amount based on projected costs. During 2020, the current service cost was $28,050, the discount rate on the DBO and plan assets was 10%, actual return on plan assets was $31,850, contributions by Blossom were $20,550, benefits paid were $17,500, and the cost of past service benefits granted effective December 31, 2020, was $29,000.Prepare a pension work sheet for Blossom Corporation for 2020 assuming that Blossom follows IFRS.
The memorandum records of Galindez Trading at January 1, 2021 show the following data: Define Benefit Obligation    2,600,000 Fair value of plan asset 3,000,000 The following information for 2021 is also provided: Service cost    800,000 Actual return on plan assets 300,000 Benefits paid 350,000 Contributions to the plan 780,000 Actuarial loss on remeasurement of defined benefit obligation 100,000 Discount rate 9% How much is the net prepaid/accrued defined benefit cost that was shown on December 31, 2020 balance sheet?
At January 1, 2020, Wembley Company had plan assets of $250,000 and a defined benefit obligation of the same amount. During 2020, service cost was $27,500, the discount rate was 10%, actual return on plan assets was $25,000, contributions were $20,000, and benefits paid were $17,500. Based on this information, what would be the defined benefit obligation for Wembley Company at December 31, 2020? a.    $277,500. b.    $285,000. c.    $27,500. d.    $302,500.
The memorandum records of Galindez Trading at January 1, 2021 show the following data: Define Benefit Obligation    2,600,000 Fair value of plan asset 3,000,000 The following information for 2021 is also provided: Service cost    800,000 Actual return on plan assets 300,000 Benefits paid 350,000 Contributions to the plan 780,000 Actuarial loss on remeasurement of defined benefit obligation 100,000 Discount rate 9% How much is the net defined benefit liability/asset that will be shown on December 31, 2021 statement of financial position?
At January 1, 2020, HH Company had plan assets of P250,000 and a defined benefit obligation of the same amount. During 2020, service cost was P27,500, the discount rate was 10%, actual and expected return on plan assets were P25,000, contributions were P20,000, and benefits paid were P17,500. Based on this information what would be the defined benefit obligation for HH Company for 2020?
Hawkins Corporation has the following balances at December 31, 2020. Projected benefit obligation $2,600,000 Plan assets at fair value 2,000,000 Accumulated OCI (PSC) 1,100,000 How should these balances be reported on Hawkins' balance sheet at December 31, 2020?
The memorandum records of Galindez Trading at January 1, 2021 show the following data: Define Benefit Obligation 2,600,000 Fair value of plan asset 3,000,000 The following information for 2021 is also provided: Service cost 800,000 Actual return on plan assets 300,000 Benefits paid 350,000 Contributions to the plan 780,000 Actuarial loss on remeasurement of defined benefit obligation 100,000 Discount rate 9% How much is the retirement benefit expense taken to profit or loss for the year 2021?