Prepare a schedule to compute the net gain or loss included in the pension expense of Company K for 2019, 2020 and 2021, and indicate whether the gain or loss is added to or subtracted from the pension expense.

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Answer 1

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Chapter 19, Problem 6P

To determine

Prepare a schedule to compute the net gain or loss included in the pension expense of Company K for 2019, 2020 and 2021, and indicate whether the gain or loss is added to or subtracted from the pension expense.

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In its defined contribution plan, Force Company reported a P100,000 balance on its Prepaid Benefit Cost on January 1, 2020. It contributed a total of P1,420,000 during the year. There was a P120,000 balance on the Accrued Benefit Cost as of yearend 2020. How much is the 2020 Employee Benefit Expense?

The following data pertains to Integrity Company that adopts a defined benefit plan for its employees: Defined benefit obligation, January 1, 2021 - P6,250,000 Plan assets at fair value, January 1, 2021 - P5,800,000 Based on the reference to market yields at the end of the year, the discount rate is determined at 10%. During the year 2021, current years’ service cost totaled P940,000 while contributions made to the fund amounted to P1,245,000 and benefits paid to retired employees totaled P1,450,000. Because the company is not making impressive income in the past years, benefits were reduced as a result of an amendment in the plan. The past service cost, which is a negative figure, amounted to P220,000. After remeasurement at the end of the year, an actuarial gain on the defined benefit obligation was computed at P102,000. Actual return on plan assets amounted to P600,000. How much is the retirement benefit cost taken to profit or loss and to other comprehensive income, respectively?…

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Answer 2

Question

Chapter 19, Problem 6P

To determine

Prepare a schedule to compute the net gain or loss included in the pension expense of Company K for 2019, 2020 and 2021, and indicate whether the gain or loss is added to or subtracted from the pension expense.

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Answer 3

Question

Chapter 19, Problem 6P

To determine

Prepare a schedule to compute the net gain or loss included in the pension expense of Company K for 2019, 2020 and 2021, and indicate whether the gain or loss is added to or subtracted from the pension expense.

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Answer 4

Question

Chapter 19, Problem 6P

To determine

Prepare a schedule to compute the net gain or loss included in the pension expense of Company K for 2019, 2020 and 2021, and indicate whether the gain or loss is added to or subtracted from the pension expense.

Expert Solution & Answer

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Answer 5

Chapter 19, Problem 6P

To determine

Prepare a schedule to compute the net gain or loss included in the pension expense of Company K for 2019, 2020 and 2021, and indicate whether the gain or loss is added to or subtracted from the pension expense.

Answer 6

Chapter 19, Problem 6P

To determine

Prepare a schedule to compute the net gain or loss included in the pension expense of Company K for 2019, 2020 and 2021, and indicate whether the gain or loss is added to or subtracted from the pension expense.

Answer 7

Chapter 19, Problem 6P

To determine

Prepare a schedule to compute the net gain or loss included in the pension expense of Company K for 2019, 2020 and 2021, and indicate whether the gain or loss is added to or subtracted from the pension expense.

Answer 8

Expert Solution & Answer

Answer 9

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Answer 10

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Answer 11

Ch. 19 - Prob. 1GI Ch. 19 - Prob. 2GI Ch. 19 - Prob. 3GI Ch. 19 - Prob. 4GI Ch. 19 - Prob. 5GI Ch. 19 - Prob. 6GI Ch. 19 - Prob. 7GI Ch. 19 - Prob. 8GI Ch. 19 - Prob. 9GI Ch. 19 - Prob. 10GI

Prepare a schedule to compute the net gain or loss included in the pension expense of Company K for 2019, 2020 and 2021, and indicate whether the gain or loss is added to or subtracted from the pension expense.

Solution Summary: The author explains how to compute the net gain or loss included in the pension expense of Company K for 2019, 2020 and 2021.

Prepare a schedule to compute the net gain or loss included in the pension expense of Company K for 2019, 2020 and 2021, and indicate whether the gain or loss is added to or subtracted from the pension expense.

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