Problem 1:

The following information relates to the defined benefit plan for the McDonald Company for the year ending December 31, 2019. Projected benefit obligation, Jan1 P4,600,000 Projected benefit obligation, Dec31 4,729,000 Fair value of plan assets, Jan1 5,035,000 Fair value of plan assets, Dec 31 5,565,000 Employer contributions 425,000 Benefits paid to retirees 390,000 Discount rate 10% How much is service cost for the year?On January 1, 20X1, Trouble Company had the following information regarding its defined benefit plan. Fair value of plan assets (FVPA), Jan 1 P480,000 Present value of the defined benefit obligation, Jan. 1 360.000 Discount rate based on high quality corporate bonds 5% Information regarding the defined benefit plan as of December 31, 20X1 is as follows: Contributions made to the fund, July 1, 20X1 P800,000 Benefits paid to retirees, September 30, 20X1 200.000 Fair value of plan assets (FVPA), Dec 31 1,128,000 Present value of the defined benefit obligation, Dec 31 720,000 How much is the interest income on plan assets