An entity provided the following information during the current year: January 1 December 31 Fair value of
Question:
An entity provided the following information during the current year: January 1
December 31
Fair value of plan assets 6,000,000 9,000,000
Projected benefit obligation 4,500,000 5,000,000
Prepaid/Accrued benefit cost- surplus 1,500,000 4,000,000
Asset ceiling 1,000,000 2,500,000
Effect of asset ceiling 500,000 1,500,000
During the year, the entity recognized current service cost P2,000,000, actual return on plan assets P400,000, and contribution to the plan P4,550,000 and benefits paid P1,950,000. The discount rate is 10%.
1. What is the employee benefit expense for the current year?
A. 1,900,000
B. 1,850,000
C. 1,800,000
D. 2,000,000
2. What is the net remeasurement loss for the current year?
A. 1,150,000
B. 1,200,000
C. 800,000
D. 750,000
3. What is the defined benefit cost?
A. 3,050,000
B. 3,100,000
C. 4,550,000
D. 3,000,000
4. What amount of prepaid benefit cost should be reported on December 31?
A. 4,000,000
B. 2,500,000
C. 1,000,000
D. 1,500,000
