AMNESTY PARDON Co. has a post-employment benefits plan that is considered a defined contribution plan. According to the plan, AMNESTY agrees to contribute P800,000 annually to a retirement fund for the benefit of its employees. On December 31, 20x1, because of poor results of operations and insufficient working capital, AMNESTY was only able to contribute P320,000 to the fund. On December 31, 20x2, because of a profitable year, AMNESTY decided to contribute P1,800,000 to the retirement fund. On January 12, 20x3, an employee retired and was eligible to a P60,000 retirement benefits based on the operating efficiency and investment earnings of the fund. How much is the retirement benefits expense recognized in 20x2?

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SOLUTION To determine the retirement benefits expense recognized in 20x2 we nee... View the full answer